Today many people in the Bartow County and surrounding areas are interested in Short Sales as a way to avoid Foreclosure. The definition of the short sale process is when the lender of a residential property allows the property to be sold for less than the amount due on the mortgage loan.

The benefit of the short sale process is to allow the seller to avoid credit report damage associated with a foreclosure. A foreclosure can stay on your credit report for up to 10 years and can take an emotional and financial toll on you and your family.

If you are interested in knowing more about a somewhat complicated short sale transaction, here are the three very uncomplicated things lenders look for when qualifying a short sale:

• Financial Hardship:  This is defined as a verifiable reason that has or will cause you to miss a payment. Examples that qualify are mortgage payment adjustment, a job loss, too much debt or a business failure.
• Monthly Shortfall: Lenders want to see that you cannot afford to pay your mortgage. You will be required to provide your agent a financial worksheet that demonstrates this. The shortfall equation is simple. Total Monthly Income – Total Monthly Expense = Monthly Shortfall.
• Insolvency: You must be able to prove to the lender that you owe more than you have in cash. Insolvency can be proven in many cases, even though you may still have some money for living expenses.

Because of the documents required, the short sale process can be lengthy. But if done correctly, it can benefit all parties involved. The lender avoids the uncertainty of the foreclosure process, the seller avoids a foreclosure on his or her credit report, and the buyer hopefully got a good deal on a property.For more information about Short Sales see About.com.

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