There is a misconception out there that banks won’t approve a short sale if the homeowner is not late on payments.

True, a lot of short sales will have some delinquent payment history in them, but there can be hardships that won’t cause payments to be missed during the short sale process.

Here are some reasons of hardship that will allow a short sale to be approved without being late:

  1. Loss of job
  2. Job transfer
  3. Medical reasons
  4. Military personnel being relocated
  5. Divorce

Keep in mind that some of these reasons may not be a financial hardship, so if there are other assets, the lender may require a cash contribution, a promissory note, etc.

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