One of the key ingredients to a successful short sale or loan modification is a hardship - the underwater property owner must be able to demonstrate a hardship to obtain a waiver of deficiency or loan modification with a reduced payment.
Many of our clients who feel "stuck" with their underwater property do not realize that they are experiencing circumstances that would constitute a hardship. It is not widely known that a "hardship" doesn't need to be financial - there are many other types of occurrences that constitute a hardship. Any of the circumstances listed below are bona-fide hardships that would qualify an underwater property owner for a short sale with a waiver of deficiency:
- Financial Hardship - housing obligations more than 31% of gross monthly income
- Job Transfer - more than 50 miles from current home
- Major Medical Issues - Cancer, Surgery, Major Illness, etc.
- Death of Borrower or Family Member
- Military Deployment
- Divorce or marital separation
- Damage to property
If you are thinking about a possible short sale and are experiencing any of these issues, it is likely that you would receive a waiver of deficiency in conjunction with the short sale. If you have any questions about whether your particular situation would constitute a hardship, call our office for a brief review of your personal situation.