How to Qualify for a Short Sale

There are Three Must Have Qualifications for a Short Sale...

1. Financial hardship

A lender will want to see that you are experiencing a “financial hardship”. A financial hardship is, A material change in-between the day the mortgage was signed and today that has affected the borrower’s ability to pay. Financial hardships can be issues such as:

2. Monthly Shortfall

Your lender will want to see that you cannot afford to pay your mortgage. A financial worksheet is essential.

The equation is: Total Monthly Income – Total Monthly Expense = Monthly Shortfall

Even if you are not currently experiencing a monthly short fall, you may qualify for a short sale if you will have a short fall soon due to a payment increase or pending layoff.

3. Insolvency

In order to qualify for a short sale, you cannot have the means to pay down the mortgage. The lender will want to see that you owe more than you have in cash (known as being insolvent). You do not have to be completely broke.

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A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.
...learn more on how purchase a short sale.

Neves & Cashman Realty - Although home to New Bedford and neighboring towns like Dartmouth, Fall River, Taunton, Fairhaven, Westport, Acushnet, and Freetown; the professional and experienced Weichert Real Estate Agents cover all of Southeastern Massachusetts and Cape Cod.