3 Must Have Short Sale Qualifications

There are many misconceptions of what qualifies a seller for a short sale. The reality is that the qualifications are very simple. Following is an explanation of the three major items that most lenders are looking to see if you will qualify for a short sale.


A financial hardship is a verfiable issue that has or will cause you to miss payments on your loan or have financial difficulties.

Financial hardships can be issues such as:

Loss of job
Loss of income
Illness of borrower or co-borrower
Death of a co-borrow that qualified the loan
Declining local market property values


Almost every lender will want to see that you cannot afford to pay your current mortgage. This is typically demonstrated on a financial worksheet or a monthly profit and loss statement. Contact us for a financial worksheet. Determining whether you have a monthly shortfall or not is actually relatively easy.

The equation is:

Total Monthly Income – Total Monthly Expense = Monthly Shortfall

You may qualify if you have a monthly shortfall or if a monthly shortfall is immenent.


In order to qualify for a short sale, you must not have the means to pay down your mortgage. This means that the mortgage company wasts to see that you owe more than you have in cash. In addition, that you can no longer meet your financial obligations with your lender as debts become due.

You do not have to be completely out of cash – this is a common misconception; the lender typically will want to see that over time you will not be able to service your mortgage obligation. Having cash in the bank for living expenses is common and will not disqualify you.

Click here to download a complimentary report on the 3 Must Have Short Sale Requirements. Please contact us to go through these issues in detail.

Our team has specialized training on helping homeowners who may be facing foreclosure. Please call us today for a no cost confidential consultation. We can be reached at: 850-259-1788.

If you or someone you know is looking at buying or selling distressed property…rely on the experts, Team Baranowski – The Distressed Property Experts!

Note: The information provided is for informational purposes. No legal advise is given or implied. Please check with a qualified attorney in your area.