Short Sales
What is a short sale? A short sale is transaction in which the seller is attempting to sell their property for less than they owe the lien holder or lien holders. In almost all cases something has happened that prevents the homeowner from being able to make their mortgage payments.
The difficult part of this process is getting the lien holder or lien holders to accept the short pay. Short sale properties are available everywhere and offer the potential of being a GREAT BUY. However, they usually take a long time to complete and, because many lien holders can not or will not accept a short pay, many attempts at a short sales fail. Also, many buyers give up in frustration and move on to another property because they get tired of waiting for lien holder’s approval.
Do I qualify for a Short Sale? Qualifications for a short sale include any or all of the following:
- Financial Hardship – an acceptable reason (as determined by the lien holder) causing the homeowner to have trouble affording their mortgage payment. Some acceptable reasons include; death in the family, serious injury impacting a wage earner’s income, loss of job, major reduction in income… to name just a few.
- Monthly Income Shortfall – You have more month than money.
- Insolvency
In all cased the homeowner must document the reason they can not make their payments. Tax returns, pay checks, documentation from employers are part of the paperwork required.
The fact that the value of your home has declined and your mortgage payment is too high given the current market value is not an acceptable reason.
More on Short sales will be posted soon.
