Long Beach, Ca.  After President-elect Obama's aggressive speech about how the government needs to intervene quickly before the United States slips into a tail spin that, "we may not recover from," and begins to detail the multi-trillion dollar bailout plan that he plans to implement, one begins to wonder how we can go from only 45 days ago when the Government announced that not only were we in a recession but we have been in it for over a year!, to well what looks like the Depression of 1932. 

This is mind-boggling and troublesome; nevertheless, many American Families are truly, "distressed."  When moves made by the Democrats to have Bankruptcy Judges empowered to readjust mortgage payments, combined with the fact that 10% of all mortgages are in default (that's approximately 5 million mortgage out of fifty million), we know that we are in for some serious licks. For families suffering from job loss or other set backs, it is important that they understand what actually qualifies them for a hardship.  If there is a legitimate hardship, banks may allow the family to sell their property through a short sale which would be better for them then losing the property through foreclosure.

The following are acceptable examples of Hardships wherein if proved would more then likely give the bank a green light for a short sale: 

 1.  The property has more mortgages on it then what it is actually worth

2.  The property is owned by a person going through economic hardship and instability, possibly a loss of a job, reduced income, failed business.

 3.  Death of a spouse, co-borrower or family member.

 4.  Incarceration.

 5.  Job relocation.

 6.  Divorce or Marital Separation.

 7.  Military Duty.

 8.  Medical Bills or prolonged illness.

9.  The property is about to be in foreclosure or is; in fact, currently in the foreclosure process.

10.  A property that is in damaged and poor physical condition.

 Specifically, there are many American families that need to sell their homes through short sales rather then lose them to foreclosure so that they can situate themselves for repurchasing real estate after the eventual stabilization of the markets. 

 Kirk Mulhearn is a licensed real estate broker and mortgage planner.  He may be contacted at 866-961-8042 ext. 110 or e mail him at kirkmulhearn@gmail.com

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