If you live in your home for a long time, usually you will build equity through appreciation, so when you choose to sell your house it will be for a profit. Sometimes when you have to sell a property before you build equity or the market starts going down, you will want to learn the short sale process.
Any property qualifies for a short sale as long as the lender agrees to the price and terms. The successful closing of a short sale will rely heavily on these two criteria
- Financial Hardship – Divorce, Loss or decrease of income which leaves you unable to pay your monthly mortgage payment.
- Insolvency – The lender will ask for financial documents proving you do not have significant assets that would allow you to pay your mortgage.