To convince your Lender to accept a Short Sale you will need to prove a financial hardship. There’s just no way around that.
Most borrower’s struggling with paying their mortgage have suffered a hardship like the ones below:
- Adjustable rate mortgage has made the payment a struggle
- Loss of Job
- Loss of hours
- Change in Job resulted in less pay
- Job relocation of more than 50 miles
- Business failure
- Medical bills
- Illness
- Health Insurance payment increases
- Divorce
- Death of spouse
- Natural Disaster (Live COVID-19)
What does NOT count as a hardship is excessive spending and living beyond your means, loss of equity, or just wanting to upsize or downsize.
Without a financial hardship your options are limited. You could:
- Sell the home and bring money to closing
- Rent out the home
- Default on the mortgage and go into foreclosure
- Refinance to lower the payment
With a financial hardship your options are:
- A possible lender workout
- Sell and bring money to closing
- Short Sale
- Deed in Lieu of Foreclosure
- Foreclosure
