Hardship For Short sale | What qualifies as a hardship?

Real Estate Agent with Munson Realty Southern California Real Estate

Hardship For Short sale | What qualifies as a hardship?

Here is a Simple “Hardship Test” that will give you an idea if you qualify for a Short Sale.

Ask yourself:

  • Have you lost your job since you’ve purchased your property?
  • Have you become disabled or had a bad accident since purchasing the home?
  • Have you been recently divorced
  • Have you experienced a death of a spouce
  • Have you had a business failure
  • Have you experienced a natural disaster
  • Have you experienced sudden illness
  • Are you encountering Large Medical Bills for you or your family since the purchase
  • Have you been relocated to another city or state?
  • Has the interest rate on your loan gotten out of control and beyond your ability to afford the payment?You must be able to prove hardship to the lender. The lender will look at each individual on a case by case basis. You may also have a Hardship not listed above, follow your instinct as well. If your not sure that your personal “hardship” qualifies, ask! (create a short sale email)

What Does NOT qualify for hardship?

  • If it appears as though you have intentionally used lines of equity on your property to buy toys and take trips, especially just before you attempt or consider a Short Sale in Los Angeles,you will have a very difficult time proving Hardship for a Short Sale.
  • Sudden realization that your home is no longer worth what you purchased if for a couple years ago is not a Short Sale hardship and not a reason to sell your house as a short sale in Southern California.

If you believe you pass the “Hardship Test”, it is most likely time to proceed with the Process of a short Sale. It is now time to contact Us and we will quickly be able to confirm if indeed you qualify for a Short Sale. Once that is established, we will begin the Listing Process and guide you through the following steps:

  1. Put your Hardship Letter together
  2. Give us (your agent) Permission to Contact your lender to negotiate on your behalf and determine what you owe to date.
  3. After we determine the market value we will set a listing price and your home will be listed and Marketed on the MLS.
  4. Once Offer is Received and you have approved the offer, we will negotiate with your lender for their approval of the Short Sale
  5. Once Short Sale is approved by lender, escrow process begins
  6. After all parties meet their obligations escrow is closed and short sale is successfully closed.

What you can and should do now if you think you are going to short sale:

  • Gather Financial Documentation including: Tax statements, paycheck stubs, medical bills, mortgage statements and anything you think you will need to support your Hardship case.
  • Contact Legal, Tax and Financial Professionals for their advise on how the short sale will

If you think or believe you qualify for a short sale and are ready to take the next step please contact us immediately. There is no fee for a consultation.

You may contact us by clicking HERE

Or Calling


Or Email us at getinthehouse@gmail.com

And on a more personal note: We have personally had friends and family experience hardship and have to Short Sale their homes. It is not an easy decision but once the process is over there is such a feeling of freedom that will allow you to have a more productive life and eventually be able to enjoy home ownership again if you choose to do so. Before you do anything else, let go of any negative judgement you have about your situation. We all experience challenges in life. Many of the worlds most successful people have had much larger challenges than you are probably going through right now. Like them, you must detach emotionally and realize this is a business decision and indeed, this too shall pass! Copyright © 2010 By Stephen Munson, Munson Realty|Hardship For Short sale | What qualifies as a hardship*Hardship For Short sale ,What qualifies as a hardship*


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Kellie Morrissey
Keller Williams Realty Success LLC - Littleton, CO

I can't agree more with the points you made in your Short Sale post.... It sounds like you are on top of this for your sellers who may be having a hard time in this economy...

3 Cheers to you!


Denver CO

Jul 21, 2010 03:41 AM #1
Joe Harvey
Lake Worth Real Estate - Lake Worth, FL

I wish everyone would read this.....here in Florida everyone maxxes out their equity lines before they try to short sale or do a loan mod. They also think that because their home is worth 35% of what they paid for it that its a hradship...I would call it a bad investment. Being in Real Estate my family sold in 2005 and moved to F

Jul 21, 2010 03:58 AM #2
Joe Harvey
Lake Worth Real Estate - Lake Worth, FL

Florida. Since moving to Florida I have been renting because I knew the market was at an all time high(why do you think my family sold???). I saw tons of other people buying all around me and I advised them all against it. These same people are now crying because they spent  $400k for their condo 2005 (i declined and have been renting at $1400/mo) and it is now worth about $145k. Everyone thought that things would keep going up up up and away but realistically this wasnt going to happen. Now all around me are SUPER CHEAP homes to buy. I am glad I was smart enought to wait. My sister came down from Boston last week and looked at 10 condos for under $70k..all 3/2 and all in Boca Raton Florida. 1983 prices without the 13% rates that went along with those prices then means its a better time to buy now than 30 years ago!!

Jul 21, 2010 04:02 AM #3
Luis Montejano
Briggs Freeman Sotheby's International Realty - Dallas, TX

You definately want to have that hardship letter together early on in the process. Good post!

Mar 12, 2011 11:27 AM #4
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