Short Sale Requirements: How Do You Qualify?

The most common way to get out of a home mortgage that you can no longer afford and avoid foreclosure is by doing short sales. The best short sale agent can help you with the process. We have listed 4 qualifications for your property to be considered in doing a short sale.

Borrower On Default 

For the lender to entitle a property as a “short sale,” the homeowner should be in default. Not being able to pay your mortgage can be considered as default by the homeowner. The time allotted before short sale varies by state, but a short sale is usually done around 6 months after the default notice. 

 

Financial Adversities

Facing financial adversity that could cause hindrance in paying the loan. Provide proof like documentation of the financial status.

 

Your liability should be greater than the value of your asset and income. Meaning you no longer have the capabilities to pay the mortgage on the due date. The mortgage company can liquidate the owner’s assets if the owner could not convert his assets to the cash needed to pay for their liabilities. 

 

Financial adversity includes unemployment, divorce, sudden medical bills, the death of the landlord, relocation, death of co-borrower, natural disasters, and military service. 

 

For more information about financial adversity, check this link https://www.cesisolutions.org/2019/12/what-is-financial-hardship/

A Willing Lender

Before going any further, the lender must be open to the concept of short selling. The possibility of the lender refusing is rare. Lenders usually will consider a short sale short-selling once provided the necessary documents.

 

An Underwater Mortgage

To qualify for a short sale, you should know your property’s market value. The mortgage balance and the appraised value will determine if your property’s market value will fall short than the amount left on your mortgage. If so, then your property is considered “underwater,” and the short sale will be the feasible solution. 

 

Charlotte NC Short Sale Agent Nancy Braun - Showcase Realty LLC can help with your short sales. We have a solution to help many homeowners, and we will be your trusted resource and guide throughout the entire short sale process. Reach us at 704-997-3794.