Three Things Lenders Look For in a Short Sale (Part 2 of 5)

Today many people living in the Apple Valley area are interested in Short Sales as a way to avoid Foreclosure. If you are interested in knowing more about a somewhat complicated transaction, here are the three very uncomplicated things lenders look for when qualifying a short sale:

• Financial Hardship:  This is defined as a verifiable reason that has or will cause you to miss a payment. Examples that qualify are mortgage payment adjustment, a job loss, too much debt or a business failure. 
• 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. 
• 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. 

Read part 3 tomorrow

Fore more information regarding Short Sales in Apple Valley CA go to Short Sales

For your entire Apple Valley CA Real Estate needs: visit our web site at http://www.RealEstateAppleValley.com

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