What is a hardship?

[Bryant Tutas]

A Short Sale is one of several pre-foreclosure remedies. In order to request a Short Sale, from the Lender, the Seller must have a hardship AND must be able to prove it. It has to be a legitimate hardship.

Hardship:

Noun
1. conditions of life that are difficult to endure
2. something that causes suffering

A hardship is anything that makes it where the Seller can not afford the payments on theri house. A hardship is something drastic that has happened to their financial situation since they borrowed the money. They borrowed the money and they agreed to pay it back. Now they can't. Notice I said CAN'T....not WON'T. Can't is a hardship. Won't is a deadbeat.

A hardship may be the result of:
Divorce
Job loss
Reduced income
Illness
Disability
Medical bills
Job relocation
Military duty
Incarceration
Failed business

One of the key documents related to a short sale is the Hardship Letter. Whatever their hardship may be they will need to write a hand written letter telling their lender about it.

We'll discuss the Hardship Letter next time