One of the steps in order for a bank to approve you for a short sale is, you must be able to prove that you are experiencing a financial hardship.
What is considered a hardship will vary depending on the bank’s discretion.
However, there are situations that ARE NOT hardships and some that DEFINETLY ARE.
What Could Be Considered a Financial Hardship?
- Loss of income.
- Job loss.
- Excessive obligations.
- A medical situation.
- Loss of a family member.
- Increase in mortgage payments that you can no longer afford to pay.
- Act of God.
- Inability to rent property.
- Military Service.
- Casualty loss (such as a Hurricane, etc.)
- Mortgage Fraud.
This list is not does not guarantee that a lender will approve a transaction simply because you are in a hardship situation. The rule of thumb is simply to be honest when presenting your hardship letter to the bank. If you do not have a true hardship, you should not be seeking a short sale.
Remember the bank will want to know
- The special circumstances which have caused you to fall behind on your house payments.
- Your current situation and what you are doing to try and get back on your feet.
- Don’t make your situation worse, by complaining to them.
- Be honest and represent the facts clearly.
If you would like to speak further regarding a potential short sale process please contact Lindstrom and Associates directly. We are CDPE Certiifed and would love to earn the right to identify all of the possible options and determine if we can assist you in the quick execution of a short sale transaction.