Two Incomes or One Marital Income Documentation When Attempting a Newton Short Sale

While attempting to short sell your Brookline home you may have questions regarding what criteria the banks will use to approve or deny your short sale.

For example, if you are a married couple and you purchased a property in your name alone before the marriage, will you have to disclose your significant other’s income while attempting to short sale the property?

Like many of these short sale issues each bank has different standards so answers to this question will vary significantly. The more strict banks will likely require you to disclose spousal income no matter what.

Other Quincy banks that have relaxed standards may only require the purchaser to supply their own personal income sources.

The living arrangement and tax filing status has a role in determining to disclose or not to disclose too. For example, a couple that files jointly will likely have to account for their partner’s income when attempting a short sale.

Remember that the banks really only want to do a short sale when absolutely necessary.

If they know that a couple is filing jointly and are both sharing the burden of servicing the loan (regardless of who’s name is actually on the deed) then this could very well be a determining factor for approval.

It’s best to be as honest as possible during this process, because the potential for backlash could be severe.