San Jose Short Sale

San Jose Short Sale

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 needs to be disclosed to the lender and what information is NOT required. 

It should be obvious that planning a vacation trip to Europe is NOT a hardship.  You would be surprised what we are hearing from the Short Sale Manager Kay Mauer of Wells Fargo who offers briefings to us on some surprising justifications as Short Sale hardship and the trip to Europe is one of her examples. The nature of the financial Hardship has to do with home owners inability to earn enough money to make the required payment for the mortgage.  

In fact, one out of 4 home owners have seen their home value decline where they owe more money to the bank than the value of their home!!   But this fact can NOT be used as a justification for Short Sale Hardship.So let’s explore what you will need to cover in your hard ship letter:

1) Current Source of Income:  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 health and medical conditions that are preventing you from accepting Full Time employment, then you need to document that.  A chronic illness that is preventing you from accepting full time employment is a very valid Short Sale Hardship and should be disclosed.

3) Impact of Hardship:   If you have been forced to use Credit Card to make payments since your un-employment or medical conditions, you need to cover this information along with supporting Credit Card bills showing your high balances and payments that will accompany your Short Sale Package.  Clearly articulate the difficulty your mortgage payment are creating for you and why you are requiring  a Short Sale approval.   

4) Alternative Measures: If you are using your Savings to make mortgage payments, you will need to mention it in your Financial Hardship letter and why you can NOT continue with such payments.

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.  

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