Qualifying for a Short Sale...

I have a property and would like to explore short selling it. Do I have to show that I technically cannot afford the payments? Another words, do I have to show them a finacial statement that proves I can’t afford the payments?

I speculated and lost, am eating a big loss everymonth, and want to dump the property.

Yes, you have to document your hardship to the lender. Don’t wait until you run out of money to pay. While you are still current, find an EXPERIENCED realtor to list your property and assist you with a short sale.

I also suggest you contact HOPE Now, an alliance with banks that is sponsored by HUD to help distressed homeowners. They can be reached at 1-888-995-HOPE. They will not directly assist you with a short sale, or even talk to your lender for you, but they will guide you through filling out a financial statement and documentation of your hardship.

Be prepared to spend 45mins to 1 hour going over all your expenses. Have as exact a number as possible, and don’t round up. If the bank tries to verify your bills and you mis-state them even by $10 dollars, your hardship may not be believed.

So, document your hardship, hire a good short sale expert realtor and keep making the payments until the short sale is approved/closed. You’ll preserve your credit and have the ability to start over on an new investment. I know you got burned, but NOW is the best time to get in on property as the prices are ideal and there are great deals to be had.

Good luck.

Thanks deal hunter.