What Qualifies as a Short Sale Hardship?
Sellers aren’t entitled to a short sale just because they’ve lost equity in their home. Lenders look for other hardships when approving short sale transactions. Here are the standard reasons for a short sale hardship that will have to be fully documented in the short sale process for the lender to even consider a short sale:
- Job loss
- Illness
- Divorce
- Death of spouse
- Natural disasters
- Bankruptcy
However, besides a hardship, lenders also consider whether the home’s value has dropped, the mortgage is near or in default (you don’t have to default to qualify but you must prove that if something isn’t done soon, you will default), and the...
128703 - Residential
