In today's real estate market it is rare to find a listing that is not a short sale.
As a seller, you have heard that there is no guarantee and that it can hurt your credit.
These are both true statements but could there be more dangerous consequences than just a few points off your credit score? If you are not a qualified seller, the answer is yes.
So, how do you know if you are a good candidate? Do you have a legitimate hardship? There must be a real reason why you cannot afford your home anymore.
Was there a job loss/layoff/relocation, death in the family, birth in the family, sudden medical bills? What major life event made it impossible for you to make the payment that you once committed to? The days of the banks approving every short sale are gone.
Not only do they ask for pay stubs, bank statements, tax returns, letters of hardship, etc.
but they actually review them.
Not only do they review them, but they scrutinize them.
They are looking for red flags.
1.
Did you have strong payment history prior to the request for short sale? 2.
Did you request a short sale prior to pursuing other workout options such as a modification? 3.
Did you recently purchase another home and shortly thereafter default on your loan? If any of these are familiar to your situation, beware.
Your lender requires you to prove that you are not one of the many homeowners that are simply tired of being upside down and want to "escape" responsibility at their expense.
If you really are facing a hardship and have pursued other workout options with your lender to no avail, short selling your home may be the only way out of a desperate situation.
For you, a short sale may be your saving grace.
As an experienced short sale negotiator, I recommend that you talk to a Realtor that has experience with short sales and maybe even an attorney.
This may be the best decision you have ever made.