Generally, sellers need a verified hardship to do a short sale however; there are ways to do a short sale without a hardship. First, understand there is no guarantee that a bank will agree to accept a short sale and release the loan under circumstances that involve a hardship, much less those without a hardship. Every bank is different and Investor guidelines vary from file to file. Here are some types of hardship: Unemployment, curtailment of income (new job, pay cut, partner’ loss of job), illness or medical emergency, job transfer (voluntary or involuntary), divorce (separation or marital difficulty), exotic mortgage terms and military service.
In some cases, a hardship is a matter of perception. A hardship is defined as a condition that is difficult to endure and it could entail some sort of physical or mental pain. You don’t have to be living in a cardboard box under a bridge to have a hardship. In one case, we proved to the bank that the neighborhood in which our client lived had a high crime rate, thus causing them great stress. Hardship. We got short sale acceptance.
So, what about a financial hardship in a short sale? Maybe you own an investment proeperty that is ‘underwater’ due to whatever reason. Or, maybe you voluntarily took a new job in another city and you had every intention to pay the current mortgage, but due to the ‘down’ market and a large loan you were forced to short sell? If we can show the bank a homeowner’s insolvency (expenses outweighing income), we are able convey the inability to pay the mortgage. This is an honest and ethical strategy that we will use to your advantage, one that will validate a hardship!