I qualify for a short sale?
qualifications for a short sale include any or all of
Financial Hardship There is a situation causing
you to have trouble affording your mortgage.
Monthly Income Shortfall In other words: You
have more month than money. A lender will want
to see that you cannot afford, or soon will not be
able to afford your mortgage.
Insolvency The lender will want to see that
you do not have significant liquid assets that would
allow you to pay down your mortgage.
is a loan (mortgage) modification?
loan modification is a process through which your mortgage
lender changes any or all of the following:
Your interest rate
Your principal balance (through a reduction)
Your loan terms (example: from an adjustable to a
process can allow borrowers to stay in their property
when they can no longer afford their current mortgage
Why would a lender modify my mortgage?
have realized that in some cases it is better for them
to work with current borrowers to lower payments or
possibly improve terms in order to keep homeowners in
their properties. The average foreclosure can cost a
lender from 35-50% of the value of a property, so keeping
borrowers in their homes is a good option for everyone.
What do I need to qualify for a loan (mortgage) modification?
to the Making Home Affordable Web site (www.MakingHomeAffordable.gov),
you will need the following information for your lender
to consider a modification:
Information about your first mortgage, such as your
monthly mortgage statement
Information about any second mortgage or home equity
line of credit on the house
Account balances and minimum monthly payments due
on all of your credit cards
Account balances and monthly payments on all your
other debts such as student loans and car loans
Your most recent income tax return
Information about your savings and other assets
Information about the monthly gross (before tax) income
of your household, including recent pay stubs if you
receive them or documentation of income you receive
from other sources
applicable, it may also be helpful to have a letter
describing any circumstances that caused your income
to reduce or expenses to increase (job loss, divorce,
How do I qualify for a loan (mortgage) modification?
first call you make should be to your lender, have the
information above ready to discuss with them and call
your customer service line to ask them what options
you have available. If the person you speak with does
not understand what you are asking, you can ask to be
referred to one of the following departments (different
lenders have different names for these departments):
to contacting your mortgage lender you can quickly complete
an eligibility test at www.MakingHomeAffordable.gov.
This test will let you know if you are eligible for
a modification through the government-sponsored Home
Affordability and Stability Program (HASP). For
a list of mortgage lenders and servicers, visit www.HopeNow.com.
What if I dont qualify for a loan (mortgage)
modification, cant afford my home, and owe more
than its worth?
are not alone and foreclosure is not the only option.
If your mortgage lender or servicer will not work with
you to reduce your payment, you may want to consider
a short sale. Agents like me, with the Certified Distressed
Property Expert® Designation, have undergone extensive
training in how to process and negotiate short sales.
A short sale allows you to sell your home for less than
what you owe and avoid foreclosure. Speak to your market
expert to see if you may qualify.
What is a Home Affordable Refinance?
Fannie Mae or Freddie Mac owns your mortgage, you may
be eligible for a Home Affordable Refinance. This will
allow you to refinance your home and often lower your
What are the qualifications for a Home Affordable
to the resources released by the government, following
are a list of qualifications:
You are the owner occupant of a one- to four-unit
The loan on your property is owned or securitized
by Fannie Mae or Freddie Mac (see Useful Links)
At the time you apply, you are current on your mortgage
payments (you havent been more than 30 days
late on your mortgage payment in the last 12 months,
or if you have had the loan for less than 12 months,
you have never missed a payment)
You believe that the amount you owe on your first
mortgage is about the same or slightly less than the
current value of your house
You have income sufficient to support the new mortgage
payments, and the refinance improves the long-term
affordability or stability of your loan