Short Sale instead of Foreclosure? Are you Qualified?

Profile picture for sthomasrealestate
Getting a letter from your Lender that says they are starting the foreclosure process is intimidating at best and devastating at least.  A Foreclosure can have lasting effects on your credit and after they take your house and sell it, they can come after the deficiency.  In a short sale you can get the deficiency forgiven.  Your credit score hit can be as little as 50 points. 
So are you qualified for a short sale?  You have to show hardship.   Have you lost your job?  Death in the Family?  Decrease in income?  Family illness?  All or any of these can constitute Hardship. 
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April 02 2010 - Indianapolis
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Profile picture for sunnyview
I think this article here does a good job of explaining the basics of short sale including qualifying hardships. People need to make sure they qualify and then work on their hardship letter to the bank. Here is a sample hardship letter and this site here has some good tips on what to include in your letter to the bank. For most people, short sale is a better option than foreclosure since it is better for your credit and it gets the bank as much money as possible back which is especially important in recourse states.
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April 03 2010
 
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DiscussionShort Sale instead of Foreclosure? Are you Qualified?
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  • April 03 2010
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