One of the biggest myths about short sales is that you have to be behind on your mortgage payments to qualify.
In reality, you don’t always have to be late — but lenders do need to see that a genuine hardship exists.

Understanding the Lender’s Perspective

A short sale means the lender agrees to let you sell your property for less than what’s owed on the mortgage.
Because the lender is taking a loss, they’ll require proof that you can’t afford to keep the home — this is what’s known as a financial hardship.

Examples of qualifying hardships include:

• Loss of income or job

• Divorce or separation

• Medical bills or long-term illness

• Death of a co-borrower

• Relocation for work or military orders

If your hardship is well-documented, many lenders will review your short sale even if you’re still current on payments.

Why Some Sellers Choose to Stop Paying

Some homeowners do fall behind before approval because the process can take months, and continuing to pay may not be realistic.
However, falling behind intentionally just to “qualify” can still hurt your credit and isn’t required by all lenders.

Bottom Line

You don’t always have to be late to pursue a short sale — what matters most is that you can clearly show financial hardship and can’t sustain the payments long-term.

Christopher Scott Realty Group
Professional Real Estate & REO Services — Central Florida
www.ChristopherScottRealtyGroup.com