What does it take to get approved for a short sale?

There are many reasons for wanting to short sell, but how do you know if you qualify?

If you owe more than your home could sell for but want out, you may be wondering if you would qualify for a short sale . There are many hardships that result in approved short sales, and even those that don't sound much like "hardships" at all.

Let start with the most common hardships that are easily approved and widely accepted by lenders:

Facing foreclosure
Unemployment/Underemployment
Employment or military based relocation
Death of a co-borrower/household wage earner
Divorce/Separation
Increase in expenses
Decrease in income
Business Failure
Natural Disaster
Medical Issues

However, there are many other reasons to short sell that do translate in to qualifying hardships. I have personally gotten short sales approved for many reasons such as:

Homeowner wanted to leave place of employment to go back to school to pursue a degree.
A voluntary employment change where the homeowner started a new career in lesser paying field.
Homeowner wanted to leave town to care for an ailing relative in another state.
Since buying the home, homeowners had children causing the home to be too small for their needs.
Since buying the home, homeowners found out they were infertile and could not have children, leaving them with a home too large for their needs.
Homeowners had bought a new home and failed to sell the old at a price to satisfy mortgage debt.
Homeowners found their commute too long and wanted to relocate to be closer to job.
Investor owners ended up with tenants gone wrong.

Does my situation qualify for a short sale?

There is a lot of misinformation out there on the web regarding what is and is not an acceptable hardship. I have seen many unlikely-to-be-approved short sales actually get approved. There are a lot of variables to every short sale and no cut and dry rules for any. Before assuming your "hardship" doesn't qualify - speak to a local short sale professional.

Reid Real Estate Group has been CT's #1 short sale team since 2010, and we have helped hundreds of homeowners out of their upside down homes and onto the next chapter!

Last Updated on May 26, 2021 by Minna Reid

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Minna Reid

Minna Reid is The Broker - Owner of Reid Real Estate Group. Reid Real Estate Group is a full-service Connecticut residential real estate brokerage, specializing in helping homeowners with legal and financial challenges including short sales, probate sales and tax lien complications.

What does it take to get approved for a short sale?

There are many reasons for wanting to short sell, but how do you know if you qualify?

Let start with the most common hardships that are easily approved and widely accepted by lenders:

However, there are many other reasons to short sell that do translate in to qualifying hardships. I have personally gotten short sales approved for many reasons such as:

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Minna Reid

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