In general, in order for a lender to consider allowing a short sale for a home owner, there must be a hardship.
Any one of these circumstances - or a combination of them -- might constitute a legitimate hardship in a lender's eyes:
- Damage to property
- Job relocation
- Divorce
- Excessive medical bills
- Business failure
- Incarceration
- An upward adjustment of your mortgage payment
- Military service
- Death of a family member
- Separation
- Significant income loss
- Death of a spouse or domestic partner
- Loss of employment
When you decide to pursue a short sale, one of the first things your REALTOR(R) will request from you will be a hardship letter addressed to your lender, because most lenders will require it. The hardship letter should explain which of the hardships listed above caused you to fall behind on your payments, and you must be able to prove it so be sure to present the facts clearly and honestly.
If you would like to search the MLS for listings in San Luis Obispo County,visit my website. If you have any real estate questions or general questions about Paso Robles or San Luis Obispo County, please contact me via email or call me at (805) 235-0234 for more information.
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Hi Sherry, this is a wonderful explanation of the hardship letter. I know CA has been hit much harder than we have, or we are waiting for this wave to come full and strong here. You would be a great asset to anyone who needs to sell in a short sale position.