In order to qualify for a short sale in MN, you need to prove to your lender(s) that you have a legitimate hardship. Simply being upside down on your property does not qualify as a hardship.
Any of the following will typically qualify as a legitimate hardship for a MN short sale:
1. Reduction in income – job loss, disability, illness, divorce, reduction in hours, etc.
2. Marital difficulties – separations, divorces
2. Increase in expenses – increase in dependents, illness, etc.
3. Significant debts – credit cards, medical bills, legal fees etc.
4. Relocation for work – relocation must be due to work and typically require a move of over 30+ miles
6. Illness – medical bills, inability to work
7. Death – death of a family member and the corresponding loss of income or associated medical bills and funeral expenses
Basically, you need to cite a specific and detailed reason why you are unable to make your mortgage payment. You must also be able to document any income that you are receiving (unemployment, rental income, pensions, social security, etc.). Remember, at one time you qualified for this mortgage, now you need to go through a rather lengthy process to prove why you no longer could qualify to make these payments.
Typically you will need write a letter explaining your hardship and provide your last two months bank statements, last two months proof of income (paystubs or a profit and loss statement if self employed), last two years of tax returns, and a completed short sale application specific to your lenders). These guidelines vary from lender to lender.
Wondering if you qualify for a MN Short Sale? Contact MaryAlice Short at 612-554-5901 or at MaryAlice@MNRealEstateTeam.com
