short sale eligibility

Short sales are getting the most press these days as the antidote for foreclosure, but they do have a limited window of opportunity and entail very specific steps.

First of all, short sale eligibility requires proof of hardship; and hardship is determined by a set of defined circumstances that change the homeowner’s ability to remain current with their mortgage payments. The following situations would signify short sale candidacy:

• The failure of your business
• The loss of your job
• Divorce
• Death of your spouse
• A natural disaster
• Insurmountable medical costs
• Illness

Your Realtor will help you organize and present all the appropriate short sale paperwork to the lender, but time is a factor in accomplishing a successful short sale.

The process needs to be initiated in the pre-foreclosure phase which begins with the first mortgage payment default. The foreclosure timeline in your state starts the clock against how long you have to list the home, find the buyer, and get the sale approved by the lender.

Consult an experienced short sale realtor to assess your situation and hopefully get you out from under.