If you live in New York City and are thinking about applying for a Short Sale of your home, consider the following: Do you meet the necessary criteria for a Short Sale and are you in the position to negotiate the best possible closing deal with your bank?

The following are some fundamental conditions for your Short Sale to be approved:

Ideally, your mortgage payments should be up to date and your credit should be good. While this is not a hard and fast rule and you may still be approved if this is not the case, having a credit score over 700 will greatly increase the chances of your Short Sale approval.

You will be required to demonstrate that you are in financial hardship. Since you’re requesting that the bank agree to accept a loss on the amount it originally lent, you’ll be required to prove that your present circumstances have rendered it impossible for you to make your mortgage payments as agreed.

Hardship and loss of income can result from a number of factors including unemployment or a reduction in work hours, illness and/or divorce. The details will have to be explained in a signed hardship letter to be included in your Short Sale application package.

Choose the right person to negotiate on your behalf. Usually this will be a Realtor or another trained professional who specializes in Short Sales. The negotiation process for a Short Sale in New York City can be lengthy and convoluted and may not wind up in your favor if not handled correctly.

If you are not approved for a Short Sale or have been rejected for in the past, other options are available to you such as Loan Modification. We here at PREMIER REAL ESTATE NEW YORK CITY will be happy to walk you through all your options and help you decide what’s best in your situation.