Short Sales and resources to avoid foreclosure

Short sales are when banks agree to take less than the entire amount on a mortgage to avoid potential forecloses on a property. Banks have been doing short sales for many years, but in the last few years have accelerated as a result of the housing crisis.

Who is eligible for a short sale?

To qualify for a short sale:

  1. Your property must be worth less than you owe on it.
  2. A homeowner must be able to prove they are the victim of a true financial hardship.  Hardships such as lower wage earnings, loss of job, or medical condition that lessens your ability to pay.  The bank will need verification of hardships.

For more information on short sales and ways to avoid foreclosures, please check this FHA link: http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure

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