The Short Sale Process:

During the short sale process, the mortgage lender agrees to discount the balance of the loan. The home owner agrees to sell the property at a price less than the balance owed on the loan, and any proceeds from the sale of the property will go to the mortgate lender. However, before any of this takes place, the mortgage lender will first asses the individual’s financial situation to determine whether the proposed sale should be approved or disapproved.

What Qualifies a Person for a Short Sale:

1. They must be at least 31 days delinquent on their mortgage note.
2. The appraised value of the property must be less than the balance owed on the loan.
3. The borrower does not own any assets that could be used to pay off the debt.
   
   

The borrow needs to provide proof of a financial hardship. Mortgage lenders usually require borrowers to submit a short sale hardship letter describing events which caused delinquency of the loan.  Some examples of hardship would be a layoff, medical illness or divorce.

Proof of Income and Assets: most recent W-2s, savings account and checking account balances, investment accounts, cash and assets of tangible value.