There are many misconceptions of what qualifies a Leawood, 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 a Leawood, Kansas homeowner is qualified for a short sale.
I) Financial Hardship for Leawood, KS. homeowners
A financial hardship for Leawood, KS, homeowners is a verifiable issue that has caused the Leawood homeowner to miss mortgage payments on their Leawood, KS. home and will continue to miss mortgage payments for the near future. The Leawood, Kansas homeowner is having financial difficulties.
Financial hardships for Leawood, 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 Leawood, KS. homeowners
A monthly shortfall is when a Leawood, KS. homeowner makes less then monthly expenses. Nearly every mortgage lender will want to see first before accepting a short sale that a Leawood homeowner cannot afford to pay their current mortgage. This is typically demonstrated by the Leawood, KS. homeowner completing a financial worksheet or a monthly profit and loss statement.
The equation a mortgage lender uses to figure if a Leawood, 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 Leawood, Kansas homeowners
In order to qualify for a short sale, a Leawood, KS. homeowner must not have the means to pay down their mortgage loan. This means that the mortgage company wants to see that the Leawood, KS. homeowner has more debt than they have in cash. The mortgage lender wants to see that the Leawood homeowner can no longer meet their financial obligations with their lender as debts become due.
The Leawood 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 Leawood 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 Leawood, Kansas homeowner.
A Leawood, Kansas Homeowner is looking to have the mortgage lender grant a short sale to prevent a Leawood 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 Leawood, 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 Leawod, Kansas.
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Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty
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