“What do banks look at when they decide if they’ll approve a short sale?”
Answer:
Banks look at:
1. The owner’s “hardship” or reason for having to sell.
2. Whether they think the owner can keep making mortgage payments, based on their income relative to expenses, including the mortgage.
3. The owner’s cash, stocks, bonds, etc., generally excluding retirement accounts.
4. The net proceeds from the sale. It should be within about 5% of what a sale at market value would yield.
If you’re thinking of doing a short sale, I’ll be happy to “prequalify” you over the phone. It only takes about 5 or 10 minutes. You can call me at (858)457-KENT.
