Short Sales

What is a short sale? At its most basic level a short sale is when the lender is asked to accept a payoff lower than the amount of the mortgage; hence the term “short sale”. Make no mistake, your credit score will take a hit; probably not as much as with a foreclosure (which can cost you 300-400 points immediately) but the late payments will be reflected and will have an adverse impact.

You must qualify for your lender to consider a short sale. In order to qualify for a short sale you must fall into one of the following categories:

Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall – A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

You will have to provide financial documents to your lender, usually the last two months of bank statements, pay stubbs, and your last two years of tax returns. Your lender is not going to take a hit on othe property if there are sufficient assets to cover the loan.

You need to find a Real Estate Agent with experience with Short Sales. Call me and let’s talk.

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