Do You Qualify for a Short Sale Transaction

Feb 26, 2018

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
  • Divorce
  • 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.

Some of the communities we serve are Encinitas,  San MarcosCarlsbadOceansideEscondidoRancho BernardoPowayVistaValley CenterFallbrook, and surrounding areas.