Good question! It seem as though every time you look around I’m writing a post about this particular subject well its true Because every time I turn around more questions on this topic arise so here we go again.
From my experience You MUST demonstrate a true hardship in order to obtain a Short Sale Approval from the bank. You also have be delinquent when you apply for your short sale. For that would show that you are having a hard time making payments. If you are paying your mortgage on time the bank will not see any problems and with that being said where is your hardship?
If you the seller had fallen on hard times you must submit a letter of hardship that explains why you cannot pay the difference due upon sale, including why you has or will stop making the monthly payments. Here’s how to determine if your short sale will be approved.
Hardships being approved by the banks are:
1. Loss of job
2. Divorce
3. Job relocation 50 miles or more
4. Significantly reduced wages (must be documented).
1. Loss of job
2. Divorce
3. Job relocation 50 miles or more
4. Significantly reduced wages (must be documented).
UNACCEPTABLE Reasons
Quitting a job
Leaving a job to stay at home and care for children
Voluntary reduction in hours worked, reducing pay
Seasonal layoff from a job
Quitting a job to go back to school
Quitting a job
Leaving a job to stay at home and care for children
Voluntary reduction in hours worked, reducing pay
Seasonal layoff from a job
Quitting a job to go back to school
Remember that it never hurts to try! In some cases it may be possible, depending on.
Who your lenders are (some are easier to work with than others), (2) what you say to satisfy the hardship requirement, (3) what your financial documents show as far as ability to pay the mortgage.
Technically, being upside down or undervalued is NOT accepted as a hardship by lenders. And regardless of what you say in the hardship letter, they will review your tax returns, bank statements, pay stubs, and credit report. If they determine that you can afford the mortgage, then the short sale will be declined.
Technically, being upside down or undervalued is NOT accepted as a hardship by lenders. And regardless of what you say in the hardship letter, they will review your tax returns, bank statements, pay stubs, and credit report. If they determine that you can afford the mortgage, then the short sale will be declined.
For more FAQs on Short Sales, check out my link.How Do You Compete With the Foreclosures in Your WNY Neighborhood!
Contact Mark Key for any further questions on this matter I will be happy to assist you 716-603-8649
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