You may be looking at your mortgage statement saying a silent prayer each month. If you ever wondered if you were a candidate for a short sale, answering these questions will help you figure out if this is the right option for you.
Have you fallen behind on your mortgage (or may do so in the near future)? If so, this may make you a good candidate for as short sale. Especially if you have been paying on time, every time in the past. Many lenders get a bad rap, but many really do want to help you resolve your issues.
You’ve in the “before” period in front of a foreclosure?
Sadly, if you are in foreclosure already, your options are severely limited. If it all possible, if you see an issue come up, alert your lender as soon as possible BEFORE payments are missed. Many lenders don’t want the headache and expense of foreclosure so you may be able to explore other options without taking the credit hit.
Have you asked for a re-negotiation of terms to no avail? If this is you, selling your home may be the best option. Laws differ by state but since most lenders are national, many of the rules are universal. In order to avoid a long (and painful) process, seek the help of a Realtor or specialist that focuses their businesses on short sale properties. They will be familiar enough with the processes over multiple lenders that they will be able to get you through the short sale as quickly as possible. Many of them have “friends” within the various departments that will be able to help navigate the short sale process and shorten the timeline even more.
Do you have a financial hardship with no relief in the near future? Some examples include job loss, loss of income, relocation, illness, death or divorce. In these cases it becomes necessary to sell your home before you would have normally done so.
Are you insolvent? Insolvency goes hand in hand with financial hardship. Insolvency means you are unable to meet your financial obligations (often times due to the financial hardships listed above) as they come due. The bank is not looking for you to be destitute. Overall, insolvency means, after stripping away the “extras” if your expenses out weigh your income then you are insolvent. In other words, don’t worry. Having some money in the bank for day-to-day living expenses typically will not disqualify you from obtaining a short sale.
Lastly, are you just…tired? If you have been struggling for a long time, you owe it to your peace of mind to put this to rest. Although navigating a short sale can be, let’s face it, a huge, enormous pain in the “you know what,” it is also a cathartic experience if done for the right reasons. There is no feeling like going from “What do I do now? to “Now I have a plan.”
If you answered yes to one or more of these questions, you may be a candidate for a short sale. Call your lender or local short sale specialist as soon as possible to see what your options are because you, my friend, may be a candidate for a short sale.
My final words are this. The fact that you are reading this and are doing something about your situation is HUGE. Bad things happen to good people all of the time. It’s not your situation, but what you do with your situation that defines you. Remember, you are worthy of a second chance.