Do You Qualify for a Short Sale?
Before you attempt a short sale on your Jacksonville Real Estate, know if you will potentially qualify. If you cannot answer yes to all four requirements, you may not qualify for a short sale in Jacksonville.
- The Home’s Market Value Has Dropped. The home is worth less than the unpaid balance on the Mortgage. The only way to prove this is by looking at recent comparative sales or have an appraisal done by a licensed appraiser.
- In Default or near default. Lenders are all over the board on this one. Some want you to be current, some don’t care, and some require that you be late and in default. Many lenders are now eager to head off future problems by considering a short sale sooner rather than later.
- Seller has not assets. You will have to prove that you don’t have enough assets/cash sitting around to pay off the difference. The bank will want to see copies of your bank account.
- Seller Has a True Hardship. The seller must submit a hardship letter that explains your hardship. Sadder the better, however understand what a true hardship is.
Examples of a hardship:
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- Unemployment – Loss of Income
- Divorce
- Medical emergency / sudden illness
- Bankruptcy
- Death
A few examples that do NOT constitute a hardship are:
- Bad money management.
- Unhappy with the neighbors or unhappy with your house.
- Buying another home.
- Pregnancy is not considered a hardship.
- Moving just because is not a hardship.
If you need help to Short Sale your house in Jacksonville or Ponte Vedra, work with a professional Jacksonville Realtor who does Short Sales (shameless plug for me here) and knows how to Market your Home For Sale.
Also, Beware of all the scams out there! Every wannabe real estate investor has suddenly become a short sale expert, so make sure you are working with a reputable Jacksonville real estate agent and/or a Jacksonville Realtor.
Legal Notice: Always seek legal counsel before attempting to pursue a short sale as well as speaking with your tax advisor to discuss any tax consequences. A real estate agent cannot give you legal advice or financial advice.
READ all Short Sale Info here.
