magnifying Pictures, Images and PhotosWhat Does a Lender Look For in Approving a Short Sale?

Most mortgage companies or lenders require a hardship letter before agreeing to a short sale.  In the hardship letter, it is important to present the facts clearly, and honestly.  The hardship letter must be able to prove the situation that caused you to fall behind on your payments, or in rare cases prove why you are likely to fall behind in your payments, and the excuse for falling behind must be legitimate and provable.  A hardship must be defined as real and convince the mortgage company that the loan is likely to become delinquent.  The simple fact that you are underwater in relation to the mortgage versus the property value will not convince the lender to permit a short sale.

In answering the question; “What Does a Lender Look For in Approving a Short Sale?” the following are prime examples, but not the end all:

  • Job relocation 
  • Unemployment 
  • Significant income loss 
  • Divorce 
  • Separation 
  • Excessive medical bills 
  • Death of spouse
  • Death of a family member
  • Business failure
  • Damage to property
  • Incarceration
  • Military service
  • Adjustment in mortgage payment or unforeseen increase in living expenses

For details, please contact me.


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