Click here to view the actual list from FHA. The good news is that if FHA considers something a hardship, then it is likely that most lenders agree.
Here is the list of things that FHA thinks are a legitimate hardship for a short sale.
* Death of Principal Mortgagor.
* Illness of Principal Mortgagor.
* Illness of Mortgagor's Family Member. Extraordinary medical expenses are part of the equation.
* Death of Mortgagor's Family Member. Extraordinary expenses are part of the rational.
* Marital Difficulties.
* Reduction in income.
* Excessive Obligations. No loss of income. To quote FHA, "The delinquency is attributable to the mortgagors(s) having incurred excessive debts(either in a single instance or as a matter of habit) that prevent him or her from making payments on both those debts and the mortgage debt."
* Job Transfer.
* A Problem with the property such as poor quality construction, expensive repairs being needed, etc.
* Inability to Rent Property.
* Military Service where the person can't afford their house because their paycheck won't enable them to cover the payment.
* Unemployment / Job Loss.
* Business failure.
* High Energy Costs. Your income and everything else stays the same, but your utility bill shoots thru the roof. To quote FHA, "All other factors remained the same, but sharp increase in utility cost(s) deferred funds that would have been available for the mortgage payment or costs associated with the removal of environmental hazards in, or near the property."
* Payment Adjustment. To quote FHA, "Delinquency began after either increase in P&I for ARM mortgage or after escrow analysis where one or more escrow item increased, including the spreading of the amount needed to repay an escrow shortage over the next year."
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at email@example.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 727-348-2211.
Steve Capen - Keller Williams Realty