The main qualification for a short sale is that you owe more on your home loan than what your home is worth. Secondly, you must be suffering some sort of financial hardship. Many lenders have dropped the required hardship explanation, however. Financial hardship can include many things, such as:

Loss of Employment or Reduced Hours
Major Illness or Medical Expenses
Divorce
Increased Bills
Higher Living Expenses
Investment Loss

But what if don’t have a hardship?

While some lenders do not require a hardship explanation, other lenders will require at least some explanation of why you cannot pay your mortgage. Some lenders have very lenient rules about what they consider to be a hardship. Give us a call at 1-800-760-9156 and we can discuss what type of hardship requirements your lender has, and what you can do if you think you do not have a valid hardship.

A common misconception about short sales is that you have to be out of money to qualify. Having cash savings in the bank, or even situations where you are currently making more money than you have in the past will not necessarily disqualify you from a short sale.