What is an acceptable hardship?

A hardship can be defined as a material change in the financial situation of a homeowner that is or will affect their ability to pay their mortgage.  Homeowner must have an acceptable hardship in order to qualify for a short sale.

Examples of acceptable financial hardships are:

  • Loss of job
  • Business failure
  • Damage to property
  • Death of a family member
  • Severe illness
  • Inheritance
  • Divorce/Separation
  • Mandatory job relocation
  • Medical bills
  • Child adoption
  • Military service
  • Payment increase or mortgage adjustment
  • Insurance or tax increase
  • Reduced income
  • Too much debt
  • Incarceration

A homeowner does not have to already be late on payments or face foreclosure to qualify for a short sale.  Generally speaking, if the homeowner has a monthly short fall and does not have enough savings/assets to cover more than three months worth of his/her short fall, then the homeowner will be viewed as facing eminant default and can apply for a short sale.

Did you know that nationwide short sale success is less than 15%? This is because most Realtors are unfamiliar with short sales and end up making many common short sale mistakes.  Unlike most, Certified Distressed Property Expert designated Realtors have a success rate of more than 85%!

With your financial futures on the line, you need a specialist on your side.  I urge you to contact MD Short Sale Real Estate today for a free short sale evaluation if you think short sale might be right for your situation. I will reach out to you right away to discuss your situation in strict confidence.