A short sale, in most instances, is a complex transaction. However, there are two very simplistic characteristics that every qualified short sale possesses: The house must be valued at less than the homeowner owes on their mortgage debt obligation. In other words, the home must be “underwater”.
The homeowner must have a qualified hardship.
NOTE: Per Century 21 Agent, Marilyn Boudreaux,This article explains the hardship letter with short sales
NOTE: Image Source: KCM Blog