We have gotten to the point where many hard working individuals are struggling to keep above water with current debt and responsibilities. The current economical times have put a big strain on many individuals. We still see that there is a great amount of home purchasers receiving notices from their bank or lender that they have defaulted on their mortgage. It is sometimes a no-brainer when it comes to choosing to use income to pay for necessities like food and water before paying the mortgage. It is sometimes a much easier decision to make when the mortgage payment has doubled in amount due monthly. No family should have to make such tough decisions but many have to now look at what this will ultimately lead to.

Once the bank has notified a home purchaser that they defaulted on their loan and that the foreclosure process has begun is when many individuals find themselves lost and with many questions on how they should proceed. One available option in avoiding foreclosure is a short sale. A short sale is when the bank or lender accepts an offer on a property that is less than what is owed on it. In other words a homeowner may owe a bank more on a property than what it is currently worth. The bank or lender must approve and accept an offer as a short pay for the amount that was originally owed.

Some of the basic things looked at by banks and lenders in order to begin the short sale process are that the homeowner has a valid hardship. The bank is verifying that the homeowner is in a situation where they can not or may not be able to make the mortgage payment. This may be due to loss in wages, family member being sick or having an accident or any other reason or combined reasons causing a homeowner to struggle with the mortgage and other financial responsibilities. The bank will also take a full look at your current financial situation. The bank may request anything from check stubs to past W-2 forms. The bank and lenders want to make sure that the current homeowner is in a situation where they can not keep up with all there financial responsibilities.