In order for an owner to be eligible for most short sales I have encountered, they must be able to prove that the market has declined and that there is some sort of hardship that makes them unable to pay the difference. Some cases are illness, job layoffs, divorce, military moves, etc. It is up to each individual mortgage company as to what they are willing to accept or not. In addition, even if you have had a hardship, you generally cannot have a large amount of savings, 401k build up, etc. A mortgage company wouldn't be ok with taking such a large loss if you actually do have the means of making up the difference, but are choosing not to. I have to tell my short sale clients that they can't do a short sale because their mortgage payment is simply inconvenient; they can only do one if they truly have circumstances that warranty it.
If I can answer any more questions, please let me know. Thanks!
The Stephens & Stephens Group
Better Homes and Gardens Real Estate Metro Brokers
http://www.StephensandStephens.net - Website
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Peter Andreasian, CDPE
RE/MAX Town & Country
10 Bond Street
Great Neck, NY 11021
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Lillian Tramantano, GRI
Certified Home Marketing Specialist
Short sales can be short and sweet, or long and tedious. It's best to work with a realtor experienced with them in order to find the best ones to work with. It saves time and stress.