3 Qualifications for A Short Sale
There are many misconceptions in the public about what a short sale is and what qualifies a homeowner for a short sale. This is an explanation of the three must-haves that most lenders are looking for:
1. Financial Hardship
Above all, you must demonstrate that you have a financial hardship which is verifiable and has or will cause you to miss payments. They can be issues like:
2. Monthly Shortfall
Lenders will want to see that you cannot afford to pay your current mortgage. This is demonstrated on a financial worksheet that your real estate agent will provide. It's basically a monthly profit and loss statement, and determining whether you have a monthly shortfall is not difficult.
3. Insolvency
In order to qualify for a short sale, you must have NO means to pay down your mortgage. Insolvent means that you owe more than you have in cash.
You don't have to be completely broke, that is a common misconception. The lender wants to see that over time you will not be able to pay your mortgage obligation. Having money in the bank for living expenses doesn't disqualify you.
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In order to go through these issues it is recommended that you sit down with your agent and examine each one in detail. While a short sale may seem like a difficult process the right agent can make it a relatively simple one.
Take action and make an appointment with us today and get yourself started on the path to financial recovery. Our team has specialized training on helping homeowners who may be facing foreclosure. Please contact us today for a no cost confidential consultation.
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The Highland Group
Chris & Karen Highland * 301-831-9947
Turning Point Real Estate – 301-831-8232
email us: isell4u2@msn.com
Text Us: 301-401-5119
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