Do I Qualify for a Short Sale?
Do I qualify for a short sale? Many homeowners struggling with their monthly mortgage payments often ask that question. Not all homeowners qualify for a short sale. Your current lender(s) will request several items in order to evaluate each file, but there are three easy qualifiers that should be present in order to determine right away if a household qualifies:
1- There must be a financial hardship. A hardship is something that has happened, is happening, or is soon to happen that will effect a homeowner’s ability to continue making their mortgage payment. This event will have happened between the time the loan papers were signed and today. Some possible hardships include but are not limited to the following:
Too Much Debt
ARM loan adjustment
Death of Spouse
2- Negative is actually positive when qualifying for a short sale as there must be a monthly shortage of money. The lender will request a financial worksheet to be completed and submitted. The worksheet will itemize ALL monthly expenditures including the current monthly mortgage payment (s). While seemingly difficult, this step is actually very easy as the lender uses the following equation:
monthly income – total monthly expenses = negative cash flow
3- You must be insolvent. Insolvency to then lender means that you do not have the means to pay down your mortgage and you have more debts than you do cash or assets. If you have small reserves of basic living expenses you will not be disqualified; however; the lender will verify to make sure you do not have assets that would allow you to pay your mortgage(s) either now or in the near future.
While a short sale can seem intimidating, the process is really quite easy and effective as long as the qualifications are met and as long as you are rely upon an experienced professional in order to negotiate your short sale. MIDAS REALTY GROUP is both experienced and knowledgeable in the successful negotiation of short sales. Most importantly, there is never a cost to the homeowners that rely on our experience and credentials.
If you or someone you know is in need of the relief a short sale can provide, please contact our office today for a FREE consultation at 800-546-2289 or complete the free evaluation request at the right to the left to speak with a professional experienced in short sale negotiations.