Home ForeclosuresForeclosures A-Z How to Know if You Are Eligible for a Short Sale

How to Know if You Are Eligible for a Short Sale

by COHFP


How to Know if You Are Eligible for a Short Sale

If you are struggling to make your mortgage payments and want to sell your home, a short sale may be an option for you. However, not everyone is eligible for a short sale. To be eligible, you must have a financial hardship, such as a job loss or medical emergency, that has made it impossible for you to continue making your mortgage payments. You must also owe more on your mortgage than your home is worth, and have no other assets or means to pay off the difference. Additionally, your lender must be willing to accept a short sale offer and forgive any remaining debt. If you meet these criteria, a short sale may be a viable solution to help you avoid foreclosure and move on from your financial difficulties.

A short sale is a type of real estate transaction in which the homeowner sells their property for less than the outstanding balance on their mortgage. This means that the lender agrees to accept less than what is owed on the mortgage in order to avoid the costly and time-consuming process of foreclosure. A short sale can be a beneficial option for homeowners who are struggling to make their mortgage payments and want to avoid foreclosure.

However, it’s important to note that not everyone is eligible for a short sale. To be eligible, you must have a financial hardship that has made it impossible for you to continue making your mortgage payments. This may include a job loss, medical emergency, divorce, or other significant life event that has impacted your finances.

In addition to having a financial hardship, you must also owe more on your mortgage than your home is worth. This means that if you were to sell your home at its current market value, you would still owe money on your mortgage. This is known as being “underwater” on your mortgage.

To qualify for a short sale, you must also have no other assets or means to pay off the difference between what you owe on your mortgage and what your home is worth. This means that you have no savings, investments, or other assets that you could use to pay off the remaining balance on your mortgage.

Finally, your lender must be willing to accept a short sale offer and forgive any remaining debt. This means that your lender is willing to accept less than what is owed on your mortgage and will not pursue you for the remaining balance.

If you meet these criteria, a short sale may be a viable solution to help you avoid foreclosure and move on from your financial difficulties. It’s important to work with a qualified real estate agent or attorney who specializes in short sales to help guide you through the process and negotiate with your lender on your behalf.



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