Do You Qualify for a Short Sale Transaction
Many people wonder why the bank would allow them to participate in a short sale transaction.Can anyone short sale their property? In all short sales, the bank must assure that the borrower qualifies for the transaction.
Most mortgage lenders will allow a Short Sale when there has been a change in circumstance after the mortgage loan was obtained—especially if that change of circumstance (or hardship) prevents the borrower from making monthly mortgage payments.
To qualify for a short sale, a borrower may have suffered any of the following:
- Loss of Income
- Decrease in Income
- Death or Illness in Family
- Job Transfer or Military Deployment
- Significant Medical Bills
- Mortgage Rate Reset
Mortgage lenders will request a Hardship Letter, a letter written by the borrower detailing the change in circumstances that now prevents the borrower from keeping the mortgage payments current.
Although there may be other legitimate reasons for a short sale, mortgage lenders do not usually accept a short sale merely because the borrower is annoyed or frustrated by a significant loss in their home’s equity.
Additionally, if a seller has a fair amount of money in savings, the lender may ask for a cash contribution to offset some of the loss. Other lenders may ask that the seller sign a promissory note to offset a portion of the loss.
We can help sellers throughout San Diego North County and beyond to avoid foreclosure and walk away from their home without having to pay a penny, and without having their credit ruined by foreclosure or bankruptcy.