Riverside and Los Angeles County Short Sales Homes On The Rise

What Are the Requirements to Qualify for a Short Sale?

To be approved for a short sale, a homeowner must meet certain conditions. The main requirements include:

1. Property Value vs. Loan Balance
   The market value of the property (plus closing costs) must be less than the amount currently owed on the mortgage.
2. Financial Hardship
   The homeowner must be able to show a legitimate hardship—such as loss of income, reduction in wages, or other financial strain—that makes it difficult to continue making mortgage payments.
3. Lifestyle or Health Circumstances (Case-by-Case)
   In some situations, health issues or the need to relocate to live with family for care may also be considered valid reasons to request a short sale.

The Downside for Homeowners

While a short sale can be a positive alternative to foreclosure, there are still impacts to consider:

• The mortgage lender may report missed or late payments to credit bureaus.
• This can affect the homeowner’s credit score, but it is generally far less damaging than a foreclosure or a voluntary surrender of the property.
• Most importantly, a short sale allows the homeowner to avoid the long-lasting financial and emotional burden of foreclosure.

My Experience

I am proud to share that I completed my first short sale in 1993, long before the 2009 housing market downturn when short sales became widespread. This early experience allowed me to understand the process deeply.

Every lender has slightly different requirements, so it is essential for the listing agent to be knowledgeable, organized, and prepared—especially as we may be entering a market cycle where short sales become more common again.

Opportunities for Buyers

Short sales can present excellent opportunities for buyers to negotiate more favorable terms—without the emotional pressure that often comes with traditional sales. These transactions require patience, but they can result in great value. As always, I value our relationship and I am here as a resource. Whether for you, your family, or your friends, I’m always happy to offer insight, guidance, and support.