Short Sale Home » General Short Sale Info » How Does A Homeowner Qualify for a Short Sale?

There are four criteria a homeowner must meet to qualify for consideration by the lender for a short sale:

1. There must be a demonstrable financial hardship
2. There must be a monthly shortfall
3. There must be insolvency, meaning the owner does not have the money to pay down the mortgage
4. The owner does not have any assets to sell to pay for the shortfall

What is an Acceptable Hardship?

The hardship must be keeping you from being able to pay your mortgage:

• Loss of Job
• Business Failure
• Property Damage
• Death of spouse
• Death of family members
• Severe illness
• Divorce
• Inheritance
• Mandatory Job Relocation
• Medical Bills
• Military Service
• Payment Increase
• Insurance or tax increase
• Reduced income
• Separation
• Too much debt
• Incarceration

Tags: business failure, financial hardship, mortgage