Do You Qualify for a Short Sale?
For a Short Sale -one in which the lender allows a property to be sold for less than the amount owed on a 
mortgage because of a borrower's financial hardship- a seller, needs to make a qualifying hardship case to the lender.
Therefore it is important to know what a lender is looking for to determine if you have a qualifying hardship case or not. This will save you time, money, and ultimately your credit.
What are the lenders looking for?
1. A verifiable Financial Hardship- which is a material change in your finances that has occurred between the day you signed your mortgage to today, that has affected your ability to pay - some examples are:
- job loss
- sustained loss of income
- death of a spouse
- suffered illness or injury
- been relocated to another city/state
- interest rate has adjusted, now making your mortgage payment is unaffordable
- to much debt
- business failure
2. A Monthly Shortfall - Use a financial worksheet to calculate your income and expenses, it will show if you have a monthly shortfall -(income-expenses=shortfall).
3. Not Having Assets- The lender will ask you to provide documentation to prove that you do not have any assets to pay the shorted difference. If you do they will sometimes discount the amount that is owed.
Always seek advice before considering a Short Sale. A real estate agent cannot give you legal advice but can let you know what your home's current value is, to determine if you are in fact short. A real estate attorney can guide you through the Short Sale process and protect you from any short sale consequences.
If you would like more information regarding a Short Sale, please contact me by phone/text at (630) 248-6077 or eMail at mmastrolonardo@remax.net
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Thanks for reading my Naperville Illinois Real Estate Blog!
Maria Mastrolonardo, Realtor(R)
RE/MAX of Naperville
Cell: (630) 248-6077
Web: Naperville Area Home Search
eMail: mmastrolonardo@remax.net
I service the towns of: Naperville, Aurora, Lisle, Plainfield, Bolingbrook, Warrenville, Wheaton, Woodridge or other surrounding areas.
Maria Mastrolonardo is a full time Illinois Realtor specializing in Short Sales, has been helping home-buyers and home-sellers since 1997. Can help you with any questions or information regarding Short Sales for the Western Suburbs of Chicago which includes but not limited to; Naperville, Aurora, Downers Grove, Lisle, Plainfield, Bolingbrook, Warrenville, Wheaton and Woodridge.
To reach me call/text at (630) 248-6077 or mmastrolonardo@gmail.com
You can also find me here!
Maria - Great post regarding short sales ! Hardship is one of the keys to get a deal approved for sure.
Chris - Thanks for your comment!
In Georgia you need to be an attorney to advise a client about short sales. I also recently learned of a buyer that was told to qualify for a short sale...he was told by his bank to stop making payments so he would qualify. He had loads of equity, and guess what...they foreclosed on him. I do not trust the system any longer. Georgia is a non judicial foreclosure state, and they can own your home in less than 90 days.
Hi Jim - Thanks for stopping by! I work closely with a real estate attorney that does short sales, so my role when meeting with clients is to gather information but my ultimate goal is to advise that they speak with the attorney to make sure that the short sale is the best option for them.
Legal and tax advice are the first two issues I recommend my clients be fully aware of in a short sale. I've boiled my job down to the simple aspect of just selling. Any other advice, I connect them with the right advisor. Sounds like you're doing the same.
Great post. Md
Marvin - Thanks for your comment!
Maria: Great post; lots of fine info here for all. Let's hope the days of the short sale are just that - SHORT! I'm ready to get back into the strong market for the LONG haul! Best wishes!
Hi Pete - Unfortunately I think short sales are going to be around for awhile.