In most cases, you can qualify for a short sale by finding a buyer who will pay more for the house than the lender expects to net from foreclosing. You will likely have to prove hardship as well, but ultimately the bottom line is the most important thing to the lender. The exception to this is FHA-backed mortgage loans, which require an extensive qualifying process.
Each lender’s guidelines may be different, but you will be required to prove that you can no longer afford your home because of difficult financial circumstances. You can do this by sending a “hardship letter” to your lender along with supporting documentation. In the hardship letter, you will explain the circumstances preventing you from making mortgage payments and request that your lender approve you for a short sale.
You will also need to fill out an application and provide documentation of your entire financial situation. Each lender has different requirements, so make sure to pay close attention to the details!
For many struggling homeowners, a short sale is the fastest and surest way to avoid foreclosure and move ahead to financial freedom. If you need any assistance with your short sale, Ark Law Group can help you. Call 1-800-603-3525 for a free consultation.