What do Banks Accept as a Hardship to Qualify for a Short Sale?

hardship letter

Each mortgage company may have different definitions of hardships they will except. In the short sale process, the hardship letter is crucial to getting your short sale approved. Your short sale agent can better advise you with tips for your specific lender. The stronger your hardship letter is, the more likely your short sale will be approved. Hardship letters are usually processed by the Loss Mitigation Department.

The following is a list of hardships that are commonly accepted by mortgage companies on behalf of short sale sellers.

Personal or family illness or injury– sometimes these hardships could even force a relocation which can prove further need for the short sale.

– Job relocation

– Job loss

-Significant loss of income

-Loss of house hold income which could be a result from a divorce or partner split. Divorce can be considered as a hardship in and of itself.

Change in mortgage payments– most likely coming from an ARM or Adjustable Rate Mortgage.

– An increase in living expenses. This could be convincing, especially if it is an unforeseen increase.

You will never know if your hardship will be accepted by a bank unless you try. The worst that could happen is that they would deny your short sale and you would be in the same situation you are already in. We encourage our clients to submit the paperwork to get the ball rolling. There may be some other options worth looking into as a plan B at the same time as your case is being reviewed by your bank.

If you live in the Northern Virginia area and have questions about the short sale process or if your hardship will qualify, please give our team a call. We would love to help you look into all your options during this difficult time. And we would love to help your family move on to a better situation. 

Jennifer Young Homes

Keller Williams Realty

(703) 774-9572