Do I Qualify for a Short Sale? – Costa Mesa Short Sale FAQs

Do I Qualify for a Short Sale? – Costa Mesa Short Sale FAQs

Have you been considering a short sale on your Costa Mesa home?

Are you behind on your mortgage?

Facing foreclosure?

Don’t know what to do?

Well, it’s time for some answers.

Generally, there are three requirements that will allow you to qualify for a short sale on your Costa Mesa house.

  1. Monthly short fall
  2. Hardship
  3. Insolvency

Let’s look at each of these.

1.  Monthly shortfall

This means that you run out of income before you run out of month, ie. your monthly living costs are $8,000, and you monthly income is $6,000.

2.  Hardship

A hardship means that you are in a materially different position than you were when you first obtained the loan.

There are numerous types of hardships.  A few of them include loss of a job, reduction in income, divorce, illness, and increase in loan payments.  These are just a few examples.

3.  Insolvency

This simply means that your debts exceed your assets.

If you meet these criteria, it is likely that your lender will seriously consider you for a short sale.  There are sellers who have obtained short sales without meeting all of these criteria, though they are typically much harder to obtain when they are not met.

Please contact Christine Donovan at 714-319-9751 for a free consultation about your situation and whether you should consider a short sale on your Costa Mesa home.

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