Acceptable Hardships For Short Sales

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You will need a good reason you can not continue to make the payments required by your mortgage to be approved for a short sale.

It is almost guaranteed that you will need a serious hardship to be approved for a short sale. In other words you are going to need to qualify for a short sale in order to complete one.

Part of your application for the short sale will be a hardship letter that details why you are not able any longer to make the required payments on your mortgage any longer to your current lender. This letter is one of the items your lender will require in deciding if your short sale will be approved.

It can make sense to a lender even when there is not a financial hardship on the borrowers part to grant a short sale approval, but it is less likely. In this case you can almost be certain the lender will either ask you for a cash contribution at closing or sign a promissory note. It may even be a combination of the two.

Legitimate hardships can often include any of the following in a short sale:

Lower income from the loss of a job, disability, illness, or just a reduction in the number of hours that a causes the inability to keep making payments.
Marriage Challenges - Separations and divorces are honest reasons a lender will consider a short sale.
Expenses that have risen - Reasons could include the birth of more children, or the full time care of a parent or elderly relative, a health problem, etc.
Serious increase in bills - credit cards bills (but make sure this wasn't from over spending on bigsreen TV's or designer purses), medical bills, legal fees and other similar types of financial debt.
Death - Death of a borrower on the loan resulting in an inability to keep making the payments. Medical bills or funeral expenses can also be a legitimate hardship when coupled with a death of a family member.
Relocation because of a job - Fifty plus miles is a hardship lenders will consider, when the change in employment location is required to remain employed.
Military service - There isn't a military family who wouldn't consider being called to active duty a hardship, but only some lenders consider it a hardship.


About the Author:
GetMeApprovedToday has many resources and articles on short sales, avoiding foreclosure and stopping collection calls.



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