A short sale is when a home buyer asks their lender if they can sell their home for less than what they owe on their mortgage to settle their debt. While many homeowners may think that this is the best option for them, not everyone can qualify. A home owner needs to meet these 4 requirements to qualify for a short sale.
- The home’s market value has dropped. Comparable sales must be able to show that the home is worth less than what is still owed to the lender.
- The mortgage is in or near default status. Many lenders try to avoid future problems by agreeing to a short sale before the property is in default.
- The seller has fallen on hard times. The seller has to submit a letter explaining why they cannot pay the difference, including unemployment, divorce, bankruptcy, or death.
- The seller has no assets. If the lender discovers that the seller has assets that can be sold to pay the shorted difference, they will most likely not grant a short sale.
For all of your short sale needs in Irvine, California, contact The Barr Team.