Our agents sit down with homeowners to discuss their options and whether or not a short sale would work for them. There are typically four reasons a lender will approve a short sale: death, illness, job loss or relocation. There are exceptions to every rule but these are the four major reasons a lender will usually accept and approve a short sale.
There needs to be some major hardship in order for the short sale to be approved. You must also determine if a short sale makes more sense compared with a foreclosure. A foreclosure means your home will probably sell for far less than it is either worth or for what you currently owe on it. A short sale will usually sell for a little bit more than a foreclosure, but less than what you owe.
If you no longer can make the mortgage payment, the worst thing that you can do is to wait. Talk to your bank right away. They will appreciate the transparency. Our agents will sit down with you and run your numbers to see where you stand. They will be completely honest with you and tell you everything you need do in order to get approved for a short sale. You’ll need to collect every document relating to your hardship–receipts, pay stubs, tax receipts, returns and W-2’s. Together you will speak with your lender and get the process started.