Do I qualify for a short sale?
Before you eagerly climb aboard the short sale bandwagon, consider the following to determine whether you may qualify for a short sale.
Has the homes market value dropped?
Hard comparable sales must substantiate that the home is
worth less than the unpaid balance due to lender. The unpaid balance may include a
prepayment penalty.
Is the mortgage in or near default status?
It used to be that lenders would not consider a short sale if the payments were current,
but that is no longer the case. Realizing that other factors contribute to a potential default,
many lenders are eager to head off any future problems.
Has the home owner fallen on hard times?
The seller must submit a letter of hardship that explains why the seller can not pay the
difference due upon sale, including why the seller has or will stop making the monthly
payments.