Short Sale Home » Seller » Are you Eligible to Short Sale Your House?

A good short sale candidate is a homeowner who is unable to keep up with their monthly financial obligations due to unforeseen hardships such as: divorce, job loss, sudden decrease in income, medical expenses, adjusted mortgage payment due to ARMs, job relocation and more.

What if I have 2 mortgage loans, will I still be able to short sell my house?

It can be possible to get an approval from both owners of the loan to short sale the house. The two lenders can cooperate and negotiate on the amounts, but it does make things more difficult. Many times the 2nd mortgage holder will lose all or close to all of the amount owed vs the 1st lender. If the 2nd mortgage holder holds out for more money, it can prolong things and possibly put in a wrench in the works.

Why do banks agree to do short sales?

Banks do not want to own your home and they would prefer to not foreclose on the property due to high costs of foreclosing the property. It can be more cost effective for a bank or lender to choose to do a short sale rather than go through an expensive foreclosure process. To minimize their losses, many lenders choose to short sale the property, if they can.

Tags: banks, divorce, medical expenses