Indiana Foreclosure Short sale What are HUD Acceptable Hardships

Real Estate Broker/Owner with Selling Indy Metro, LLC RB14037942

List of Possible Hardships for a shortsale.  The more combined hardships the better chance of a Shortsale being accepted.  A Hardship is the underlying condition that has caused the inability to pay the mortgage. 

Death of principal mortgagor

Death of mortgagor's family member

Illness of principal mortgagor

Illness of mortgagor's family member

Marital difficulties

Curtailment of income


Excessive obligations

Inability to sell property

Job Relocation

Property problem (roof leaks, construction litigation, etc.)


Inability to rent property

Military Service

Casualty loss (such as a Hurricane, etc.)

Energy-Environmental costs

Servicing problems

Payment adjustment (ARM Adjusting)

Payment dispute

Transfer of ownership pending


Abandonment of property (due to condition of property, for instance)

It is Usually not just one single event that has put a Loan into foreclosure.  Often times it is several combined hardships.  Always list all of the underlying causes for your inabliity to continue making your payments.

Posted by

Shannon Thomas Realtor

Selling Indy Metro, LLC

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Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Shannon:  this is an excellent list.  It seems to cover just about everything I know of that a lender would accept as an acceptable hardship.  This is what differentiates a strategic default from a true short sale.  It is more and more the case that if a seller does NOT have some of the items on your list as part of the reasons for their default, that the lender will definitely come after their assets... which I believe they should, in the case of a "strategic default."

Jul 14, 2010 11:22 PM #1
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Shannon Thomas

Managing Broker, E-Pro, ABR,SRS, SFR
I Want to sell my home!
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