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Who Qualifies for a Short Sale?
In order to qualify for a short sale, the seller must prove to the bank one or more of the following conditions:
~ Loss of job, and difficulty in finding new suitable job
~ Job Relocation, when equity is deficient
~ High medical expenses due to disability, injury or illness
~ Divorce
~ Unable to afford the loan from the beginning
~ House needs unexpected major repairs
~ Overextended Credit
~ Changing Economy
~ Adjustment in mortgage payment due to interest rate
Incidentally, these are also the most common reasons for a foreclosure.How do I benefit?
A Short Sale Package Is Required
A short sale package it used to determine whether a homeowner can afford the property. Most lenders already have a standard package which they will send to the borrower upon request. The borrower is expected to provide financial information to include income and household expenses.
The seller must fill out forms with the Listing Agent to be submitted to start the Short Sale process - and submitted with any offer. These forms include:
~ The Listing Agreement
~ Authorization to Release Information form
~ Hardship Letter
~ Financial Statement
~ Copies of 2 year Income Tax Returns
~ Copies of Bank Statements (2 previous months)
~ Seller Net Sheet (a copy of the HUD form with offer)
~ Contract (when offer is accepted)
Hire a Short Sale Specialist!
Home owners in this situation should contact an experienced Short Sale Specialist to not only list and market their home, but also handle the entire short sale process for them.
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