WHO QUALIFIES FOR A SHORT SALE?

Most lenders will consider allowing a Short Sale if there has been a change in circumstance after the loan was initally obtained which prevents the borrower from making payments. 

Some of the possible reasons:

1. Loss of income

2. Divorce

3. Job Transfer

4. Medical Bills

5. Mortgage Rate Reset

The lender will want a Hardship Letter explaining what happened to cause the inability to keep up with mortgage payments.  An unsatisfactory reason would be "the market has declined".

If a seller has substantial savings, the lender may ask for a "contribution" to offset some of the loss.  Additionally, the lender may ask for a "promissory note" if the borrower shows a good income stream, often at a favorable rate and terms. 

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This site, Wendy Rulnick or Rulnick Realty, Inc. 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. 

No part of this website may copied or reproduced.

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