Do You Qualify for a Colorado Springs Short Sale?

Woman wondering if she qualifies for a Colorado Springs Short Sale So you've heard about short sales. Now you'd like to find out if you might qualify for a Colorado Springs Short Sale yourself. Here's a quick litmus test:

No Ability to Pay Current Mortage

This is really the very first criteria the bank looks at. If a small adjustment on you payment would help ensure you could pay the mortgage, they might consider a loan modification instead. If you can't make the payment regardless of how they might restructure your loan, then a short sale becomes an option.

The bank will want to look at all of your current financial information, like pay stubs, bank statements and a list of all your current expenses. They'll compare that information to your current payment and see if they think you could make the payment by using a formula. If they see that your debt load and expenses far outweigh your income, they'll open the door for a Colorado Springs short sale.

Lack of Equity

Is your home worth less than what you owe? If you have enough equity in your home to sell it, cover all the transaction costs and still break even or make money, then the bank won't consider a short sale. It only makes sense for them if you have to take a loss to get the home sold. They view the mortgage repayment as your responsibility, so if there's any way you could pay off the entire loan in a sale, they will expect you to do so.

Valid Hardship

Is there a good reason you are having difficulties making your payments? Do you have unexpected medical bills, sudden job relocation or termination? This is another way the bank determines your ability to pay back the loan. They'll require a handwritten hardship letter explaining why you can't make your payments anymore. It doesn't have to be 10 pages long or a sad story, just a simple explanation of your situation.

Desire to Resolve Situation

If you care about your financial future and your ability to get credit or even a home in the future, then a Colorado Springs short sale is a much better alternative to foreclosure. It will take some work on your part and the process can take a few months. And while there's little work in a foreclosure, you'll receive constant harassment from the banks, their lawyers and you'll find it next to impossible to get a home loan in the next 6 years.

If you're willing to roll up your sleeves, organize your house and get your life back on track, you can be in a much better place within 9 months. And within 2 years, you may start to get qualified for a mortgage again. There are rewards to stepping up and taking action to resolve your current hardships. And while some effort will be required on your part, you can set yourself up for a much happier life in the near future.

Get started with your short sale today!

Wanna learn more about short sales?

Checkout the Short Sale Series:

Colorado Springs Short Sales Part 1 - What is a Short Sale?

Colorado Springs Short Sales Part 2 - Do You Qualify?

Colorado Springs Short Sales Part 3 - Pros and Cons

Colorado Springs Short Sales Part 4 - The Short Sale Process

Contact me if you'd like to learn more about short sales or want to list your home with a Colorado Springs Short Sale Specialist.

Jamie Mades, REALTOR
Keller Williams Clients Choice
Office: (719) 535-0355
Direct: (719) 685-8200

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