What is a Hardship?

A Short Sale is one of several pre-foreclosure remedies. In order to request a Short Sale, from your Lender, you must have a hardship AND you have to be able to prove it. It has to be a legitimate hardship. Hardship: Noun 1. conditions of life that are difficult to endure 2. something that causes suffering A hardship is anything that makes it where you can not afford the payments on your house. A hardship is something drastic that has happened to your financial situation since you borrowed the money. You borrowed the money and you agreed to pay it back. Now you can't. Notice I said CAN'T....not WON'T. Can't is a hardship. Won't is a deadbeat. A hardship may be the result of: * Divorce * Job loss * Reduced income * Illness * Disability * Medical bills * Job relocation * Military duty * Incarceration * Failed business One of the key documents related to a short sale is the Hardship Letter. Whatever your hardship may be you will need to write a hand written letter telling your lender about it.

Replies

Bryant Tutas September 10, 2009 at 1:38am

Fiona, I think we will be seeing more of this is the future. Sometimes the hardship can be that they have to move and can't sell because the value has dropped so drastically. If the hardship is not clear just be sure the sellers understand that the short sale may be denied. All we can do is try.
Fiona Barone September 10, 2009 at 1:14am

I have one set of clients that do not have a true hardship and this was unbelievable, they are completly upside down, owe $200k on a house that is worth $120. Citibank agreed to do a shortsale based upon income and debt ratio, they are current in their mortgage also, Citi's reasoning for this was let them out of the mortgage, because eventually they will default. This one is closing at the end of this month, 6 weeks, start to finish. It is the only one I have ever done without a TRUE hardship.
Guy Lofts CRS September 9, 2009 at 3:40pm

This is good. This answers a question i just asked.

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