Would I qualify for a short sale?

Each sale is different, but there is a very basic litmus test to see if a short sale is something you should consider.

First, are you experiencing a financial hardship? Hardships can be anything from a job loss, to increasing debt due to divorce or medical expenses, to the failure of a business. Each person’s hardship is different. What is important is that the hardship is verifiable and is preventing you from satisfying your mortgage obligations. If your financial picture is different today than the day you closed on your house, you may be in a position of hardship. You will be expected to write a detailed hardship letter explaining how you found yourself in this position.

Second, is there an actual monthly shortfall? Short sale negotiators and lenders look for a monthly income that is less than the monthly expenses. You will be expected to fill out a detailed monthly financial statement. This statement will include your monthly income from all sources and your recurring monthly expenses (all mortgage payments, car payments, child care, utilities, etc.).

Remember, short sales are not right for everyone. We highly recommend speaking with an attorney and an accountant to make sure this is a path you should even consider.