The Three Most Important Things Lenders look For When Qualifying A Short Sale

There is so much misinformation out there these days about Short Sales. While this transaction may be a somewhat complicated process, here are the three very uncomplicated things lenders are looking for to see if you qualify:

1. Financial Hardship: This is defined as a verifiable reason that has or will cause you to miss a payment, such as a mortgage payment adjustment, a job loss, too much debt or a business failure.
2. Monthly Shortfall: Lenders want to see that you cannot afford to pay your mortgage. You will be required to provide your agent a financial worksheet that demonstrates this. The shortfall equation is simple: Total Monthly Income – Total Monthly Expense = Monthly Shortfall.
3. Insolvency: You must be able to prove to the lender that you owe more than you have in cash. Insolvency can be proven in many cases, even though you may still have some money for living expenses.

For more information about the Short sale process go to Homebuying.com.