WHO QUALIFIES FOR A SHORT SALE?
Most lenders will consider allowing a Short Sale if there has been a change in circumstance after the loan was initally obtained which prevents the borrower from making payments.
Here are the some possible reasons:
There are many factors that can cause a homeowner to find themselves in distress.
Especially in today’s climate of economic turmoil.
1. Payment increase or mortgage adjustment
2. Loss of job
3. Business Failure
4. Damage to Property (lack of insurance and inability to make repairs)
5. Death of a Spouse
6. Death of Family Members
7. Severe Illness
8. Inheritance (beneficiary unable to cover bills, utilities, maintenance of property)
9. Divorce
10. Separation
11. Relocation (inability to support two households)
12. Military Service (extended active duty)
13. Insurance or tax increase
14. Reduced income
15. Too much debt
16. Property Value Decline
The lender will want a Hardship Letter explaining what happened to cause the inability to keep up with mortgage payments. An unsatisfactory reason would be “the market has declined”. We will give you examples of a hardship letter.
