Are Short Sales a Viable Option for Sellers?
For many sellers this is a viable option; however be assured that you must prove that you have a hardship. The following criteria are just some of the hardships that the lien holder may grant a short sale status on, but there are many factors:
• Death of Princiipal Borrower
• Death of Principal Borrower Family Member
• Serious Illness
• Marital Problems (Divorce, Separation)
• Unemployment
• Lessened Income
• Excessive Obligations
• Long Distance Employment Transfer
• Military Service
• Unable to Sell Property or rent Property
• Principal Borrower has Business Failure

If you feel you may qualify, what’s your next step?
• Call a realtor who has past experience in short sales and can advise you. There is a possibility they can work out something with your lender where you can stay in your home.
• If they feel you have a potential short sale, they will contact your lending institution; obtain the package that must be filled out and sent back to the lending institution; and they will speak to the lending institution, with your permission, through the whole transaction.
• The realtor will place the property for sale and keep in constant contact with the lending institution for you.
Is there an advantage to going this route?
• It is not as distressing as facing possible foreclosure
• Your future purchase will be driven by your FICO credit score
And sellers take a bigger “hit” on their credit scores if they have a foreclosure vs. a short sale. Of course, this could change also. In a foreclosure your score can be reduced from 259-280 points, but with a short sale it could be reduced from 80-100 points.
• The waiting time to buy another home is also a consideration. With a foreclosure, it can be 3 to 4 years before a lender will give you a reasonable interest rate and only 18 months to 2 years on a short sale.