You may have determined that it is not be possible to sell your home for the amount of the existing
mortgages, and so you end up considering a short sale. Opting for a short sale may take a lot of time,
effort and patience. However, the benefits of a successful short sale versus foreclosure are certain,
making it worth it in the end.

Sellers are plagued by misconceptions in determining whether or not they qualify a short sale. The
qualifications are relatively simple. Here are the three major things that most lenders will consider
when deciding if you qualify for a short sale:

1. Financial hardshipYou are in financial hardship if you lack enough money to sustain yourself and provide for daily
   necessities. Simple missed payments of your utility bills, loan payments and/or mortgage is strong
   evidence that you are in need of financial aid.Listed below are some examples of hardships:
   ● Unemployment/loss of income
   ● Excessive debt
   ● Divorce
   ● Mortgage Adjustment
2. Monthly ShortfallMonthly shortfall means that your monthly expenses exceed income. The lender requires you to prove
   them your financial hardship, showing that you can no longer afford to pay for your current
   mortgage(s). Typically demonstrated on an income and liability worksheet, determining whether you
   have a monthly shortfall or not is relatively simple.Equation:
   Total Monthly Income – Total Monthly Expense = Monthly ShortfallYou are qualified if a monthly shortfall is evident.
3. InsolvencyInsolvency transpires when you are unable to meet your financial obligations, for instance, paying
   one’s debt. You must be unable to pay your mortgage for the lenders to consider you for a short sale.
   This means that the mortgage company wants to see that you owe more than you earn, monthly.
   Declaring insolvency doesn’t mean you have to be completely out of cash. It’s a lot different from
   bankruptcy, and interchanging the two is a common mistake. The lender needs to see that you can’t
   afford to continue your mortgage obligation but having just enough money in the bank for daily
   expenses won’t disqualify you.A short sale is suitable if you want to preserve the integrity of your credit. If your mortgage company
   has already agreed to a short sale, then you can sell your home and pay off all or a portion of your
   remaining mortgage balance with the proceeds.

________________________________

Do you have general real estate requests or need a Realtor to represent you in South Lyon, Novi, Farmington Hills, Livonia, Northville, Plymouth, or in any other surrounding Oakland County area? Feel free to contact me.