How does a mortgage lender qualify an Overland Park, KS. Homeowner for a Short Sale?- How to Stop an Overland Park, Kansas Foreclosure

How does a mortgage lender qualify an Overland Park, KS. Homeowner for a Short Sale?- How to Stop an Overland Park, Kansas Foreclosure

There are many misconceptions of what qualifies an Overland Park, Kansas homeowner for a short sale. Lets ignore the paperwork and start with simple qualifications for requesting a short sale. The following is an explanation of the three major qualifications that most mortgage lenders look at in order to see if an Overland Park, Kansas homeowner is qualified for a short sale.

I) Financial Hardship for Overland Park, KS. homeowners
A financial hardship for Overland Park, KS, homeowners is a verifiable issue that has caused the Overland Park homeowner to miss mortgage payments on their Overland Park, KS. home and will continue to miss mortgage payments for the near future. The Overland Park, Kansas homeowner is having financial difficulties.

Financial hardships for Overland Park, Kansas homeowners can be the results from:
1) Loss of job
2) Loss of income
3) Relocation
4) Illness of borrower or co-borrower
5) Divorce
6) Death of a co-borrower  that helped you qualify for the mortgage loan
7) Declining local market property values
8) High medical bills
9) Hefty unplanned expenses

II) Monthly Shortfall for Overland Park, KS. homeowners

A monthly shortfall is when an Overland Park, KS.  homeowner makes less then monthly expenses. Nearly every mortgage lender will want to see first before accepting a short sale that a Overland Park homeowner cannot afford to pay their current mortgage. This is typically demonstrated by the Overland Park, KS. homeowner completing a financial worksheet or a monthly profit and loss statement.

The equation a mortgage lender uses to figure if an Overland Park, KS. homeowner has a shortfall is:
Total Monthly Income – Total Monthly Expense = Monthly Shortfall
You may qualify if you have a monthly shortfall or if a monthly shortfall is imminent

III) Insolvency for Overland Park, Kansas homeowners

In order to qualify for a short sale, an Overland Park, KS. homeowner must not have the means to pay down their mortgage loan. This means that the mortgage company wants to see that the Overland Park, KS. homeowner has more debt than they have in cash. The mortgage lender wants to see that the Overland Park homeowner can no longer meet their financial obligations with their lender as debts become due.

The Overland Park homeowner does not have to be completely out of cash – this is a common misconception; the mortgage lender typically will want to see that over time the Overland Park homeowner will not be able to pay their mortgage obligation. Having cash in the bank for living expenses is common and will not disqualify an Overland Park, Kansas homeowner.

An Overland Park, Kansas Homeowner is looking to have the mortgage lender grant a short sale to prevent an Overland Park real estate foreclosure. The lender will grant a short sale if they believe that a foreclosure is inevitable and by granting a short sale they will save expenses vs. processing a lengthy and expensive foreclosure. To the mortgage lender it is a business decision.

We help stop real estate foreclosures in Overland Park, Kansas everyday. Find out why the Dowell Taggart Team of the Kansas City Real Estate Network is the most referred Loss Mitigation Short Sale Specialist in Overland Park, Kansas.

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Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty 

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