Today’s tough economy has homeowners feeling the pinch and many are unable to make their mortgage payments. Generally, this is due to layoffs and job losses, but unfortunately, although the home owner spends time looking for additional or new work with enough income to cover their bills, they are still living hand to hand and have generally fallen way behind in their bills before finding that new job. Once they realize they cannot cope with the situations, or have not been able to find stable work, many of these homeowners call their real estate agent to list their homes for sale, so they can avoid the debt load that is building. Once they have talked to the real estate agent, they often find the fair market value of their home has dropped with the times, and even if they sell their home at the today’s price, they may not make enough to cover their entire mortgage. This leaves the homeowner in a situation where they are facing bankruptcy or foreclosure, although many of these homeowners are not aware that there are other options that are open to them.
One of these options is short sale, which more and more lenders are choosing, as opposed to forcing their borrowers into foreclosure, which could leave the property sitting vacant for month, or even years with no revenue being generated on it. This is a good option for homeowners who are in serious trouble financially. Usually, but doing a short sale, homeowners can walk away with their credit score in tact. Please contact The Canseco Group for further information on this type of transaction. www.canseco.com
For homeowners to proceed, the homeowner must meet the qualifications their specific lender requires. For the most part, if they can say yes to the following questions, they will qualify.
- Is the value of the home less than the mortgage? Proof will be required.
- Is the mortgage in default?
- Is the homeowner facing hard times?
- Has the homeowner used all their assets staying afloat?
Most lenders, who are entertaining short sales, will include the following reasons as “hardship”.
- Unemployment
- Divorce
- Medical Emergencies
- Death
- Bankruptcy
Lenders do not accept pregnancy, moving, or changing lifestyles as hardship when facing a short sale situation.
So, in other words, you must supply actual proof that you are indeed suffering hardship for the lenders to agree to a short sale of your property. Once you have proven your case of hardship, and been approved for a short sale, the real estate company can proceed with the sale of your property.
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