Lots of people think a hardship is based solely on financial matters, and that's not necessarily true. Just about anything that makes it difficult for you to continue making a mortgage payment might qualify you for a hardship.
The one thing that a bank does not want to see is a homeowner who wants to walk away simply because the home is no longer worth the amount the owner paid for it. While being upside-down is one of the qualifications for a short sale, a bank is under no obligation to grant the short sale solely on that basis.
Think back to when you took out the loan and what your life was like then. Has it changed since then? If your situation is unchanged, the bank might say you can afford to stay in your home at your present payment level. If your situation has changed, here are some examples that may qualify for a hardship:
• Unemployment
• Reduced income (furloughs, new job, partner's loss of job, pay cut)
• Illness or medical emergency
• Job transfer (voluntary or involuntary)
• Divorce, separation or marital difficulties
• Exotic mortgage terms (an adjustable-rate loan)
• Military service
• Death in the family
• Incarceration
• Increased expenses and excessive debt
• Unexpected repairs or home maintenance
Current update on short sale trends in SW Florida
