There are three simple qualifications almost every lender will want to see to qualify you for a short sale:
Your mortgage company will want to see that you have a verifiable material hardship that is affecting your ability to pay your mortgage. Hardships can be issues such as a payment increase, job loss, income decrease, medical expenses and any other issue that is truly affecting your ability to pay.
Your lender will want to see that on a monthly basis your hardship is causing you to have a monthly shortfall. This means that they want to see that your monthly income is less than your monthly expenses. This is a simple calculation that can be done by adding up all your expenses and comparing them to your total income. If your expenses are higher than your income, you have a shortfall.
Your lender or servicer will want to see that you are insolvent prior to approving a short sale. Simply translated this means they want to see that you do not have the ability to pay down the balance of your mortgage in liquid funds. You do not have to be out of cash. This is a common misconception . Having money in the bank for living expenses is common and will not disqualify you.
David Simpson
Certified Distressed Property Expert, CDPE
RE/MAX Associates
4285 N. Shiloh Drive, Suite 205 - Fayetteville AR 72703
Cell: (479) 200-9914
Office: (479) 684-5757
Fax: (479) 684-5755
www.shortsalenorthwestarkansas.com
www.nwarkansashomesforsale.com
David Simpson with RE/MAX Associates in Fayetteville Arkansas is one of the few agents with the Certified Distressed Property Expert® (CDPE®) designation in Northwest Arkansas. He has helped many homeowners avoid foreclosure by selling their homes through a short sale. He has homes listed all over Northwest Arkansas including the Fayetteville, Springdale, Rogers, Bentonville and Bella Vista areas.
This site, David Simpson or RE/MAX Associates, LLC is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.