It’s amazing how many home owners still believe that they should qualify for a Short Sale simply because their home value has declined! Last week we got a call from a San Jose Homeowner who was interested in a Short Sale. When we asked about his job we discovered that he has been working for a large silicon valley company for more than 10 years and recently got a pay raise! I then asked if his health or family conditions have drastically changed that might qualify him for a financial hardship and the answer was no again!
However he was still insisting that he has a financial hardship! So, we recommended he call us when he could prove his hardship since we told him that his request for a Short Sale would be denied since his wage earner income is well documented and if the income shows his ability to make his mortgage payments, his bank would reject his request.
Proof of Financial Hardship is required from your lender to issue an approval for our Short Sale. However, writing a Hardship letter proves difficult for some home owners who are not sure what information should be disclosed to the lender and what information is NOT required. So let’s explore what you will need to cover in your hard ship letter:
1) Income Source : You will need to document you current source of income. If you have lost your job, you need to state the factual information such as termination date and salary information to show that how you were able to make the mortgage payments while you were employed. If you are collecting un-employment you need to document how much you are earning and why it’s not sufficient to cover the mortgage.
2) Health Condition: If you have suffered major illnesses that is impacting your ability to earn a living then you need to document this condition using letters from your doctor or health insurance company. Chronic conditions that are preventing you from Full Time employment are valid Hardship and should be disclosed.
3) Impact of Hardship: If you have been forced to use your savings to make your mortgage payments, then you have a valid reason for hardship and should document it in your hardship letter.
As for the information that could be misleading and could cause a confusion, make sure you explain large savings or large lump sump payments that you might have recently received since the Short Sale Negotiators confusion could mean a quick denial of your Short Sale request.
Contact US for a FREE, no obligation conversation your eligibility for a Short Sale.