Short Sale Chicago

Avoid Foreclosure. I Can Help.


What qualifies as hardship in a short sale?

Simply being underwater does not qualify as hardship.  If you owe more than you are worth, being upside down alone is not adequate hardship to get a short sale approved. There has to be a financial hardship.

In nearly every case of hardship I have ever seen, a loss of income has been involved. It could be unemployment, divorce, being laid off, the failure of a business, or any of a hundred other things, but a loss or decrease of income is absolutely hardship. When your expenses remain the same and your income goes down or disappears, you have a case for hardship.  If you lose income, hardship is not hard to prove. In rare cases, income has remained the same but the payment has adjusted up, but the mathematical outcome, namely a deficit, is the same.
I can pretty much guarantee that with mortgage investors, Fannie Mae, and Freddie Mac shaking in their boots about strategic defaults that hardship will have to be proven and justified.  It may not be enough to state your hardship.  Borrowers have to provide any and all supporting documentation in order to have qualified hardship.

August 11, 2010 - Posted by | Short Sales

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