Foreclosure. Short Sale. REO. All three are real estate terms that you hear in the news every day, especially during the rough real estate climate we are currently in. “Foreclosure” is a term that most people know very well. When a homeowner stops paying the mortgage payments on their home, the bank then starts to foreclose on their home. This is a very stressful and painful experience for those who are struggling financially. Once you lose your Wilmington home, it could be incredibly difficult to get back on your feet and own a home again. That’s where the short sale comes in.

As a Wilmington real estate agent, I have taken an active interest in helping many struggling homeowners through what can be a much better alternative than foreclosure: the short sale process. Short sales occur when one of two things happens:

1.    The amount owed on your Wilmington property is worth more than its market value.
2.    A negotiation occurs between the homeowner’s mortgage companies to accept less than the value of the loan. A buyer closes on the property and is sold for less than the total value of the mortgage." target="_blank">Wilmington short sales are great options for investors and first time homebuyers because they are sold at low prices. They’re also an attractive option for struggling homeowners because it can help them avoid the painful foreclosure process, and it allows them to get back on their feet much faster. Here are three things that you need to qualify for a short sale in Wilmington, DE:


Proof of financial hardship. You need to be able to prove to your lender that there is a situation that is causing you to miss your mortgage payments. Whether you were laid off at work, suffered a costly tragedy or have another financial drain, you need to be able to prove to your mortgage company that you are physically unable to pay your mortgage payments for a valid reason.

A monthly income shortfall. A basic way to put this is that you need to show that you have more “month than money.” Before you qualify for a short sale, your lender will want to see that you don’t have the income flow to continue to pay your mortgage or pay off missed payments. Have a few copies of your bank statement and a breakdown of your monthly income ready to show your lender.

Proof of insolvency. Your lender wants to make sure that you do not have enough money in assets to liquidate in order to pay off your mortgage. Your belongings will be assessed, so before you begin the short sale process, make sure that you don’t have enough in liquid assets to make mortgage payments.

Of course, going through a Wilmington short sale isn’t without its pitfalls. The process can oftentimes be timely and drawn-out. The more prepared you are going into the process, however, the faster your short sale will get approved. Using a Wilmington short sale expert will help ease the stress and tension surrounding a short sale.

If you are overwhelmed by your mortgage payments and feel like you need some guidance, don’t hesitate to contact me! I’d be happy to answer any of your questions regarding Wilmington short sales and help guide you on the path to recovery. If you start looking at your options now, then you can avoid the hardships and stress that come with foreclosure. I hope to hear from you soon!

Katina Geralis
Wilmington, DE Real Estate Expert
NextRE Team

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