The undue financial hardship that necessitates the need for short sale assistance is not exclusive to residential homeowners. Commercial property owners can run into similar situations where they cannot make payments on their properties and end up trapped in an underwater mortgage. Suppose your commercial property winds up becoming less valuable than your mortgage payments. In that case, you are within your rights and power to look at conducting a short sale to protect your credit score and help your lender recoup as much value on the property as possible. But how do I qualify for a short sale? How can I get my lender on board with a short sale? Are there any potential hurdles down the line I should be aware of now? Read on and watch the following brief video to find out the answer to these questions:
Proof of Hardship
The main component required for a short sale, regardless of whether a residential or commercial property, is the need to show proof of hardship. You need to have certifiable proof that you can no longer make the mortgage payments on your property. Whether it is a loss of a job, a substantial change in financial circumstances, or another viable reason, providing proof of that hardship is essential for becoming qualified for a short sale.
The Lender Has to Approve
For any commercial property to be part of a short sale, the lender must approve. In the event of a short sale, the lender will take a loss on their initial investment. It is almost impossible to recoup the full value of the outstanding mortgage through a short sale; however, if they determine that they can recoup enough value on the deal to outweigh a foreclosure, then the lender will be more likely to approve the sale.
After the short sale is approved and completed, your journey may not be over quite yet. The lender is within their rights to file a Deficiency Judgement lawsuit against you to try and recoup more of the original loan than what they earned through the short sale. You can either be prepared for the possibility or try to get out in front of it by including a clause in the short sale agreement protecting you from potential post-sale deficiency collection.
Short selling your commercial property can help you avoid the financial hardships associated with a foreclosure. When you begin to work out your short sale details, having an experienced team on your side helps you navigate the process and get you back on your feet — and that’s where the short sale experts at EZ Short Sales come into play.
Contact EZ Short Sales to learn more about our services and how we can help you today!