Understanding Causes of Distress
In order for a bank to accept a short sale, the borrower must have verifiable financial hardship.
Examples of acceptable financial hardships are:
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Loss of Job
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Business Failure
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Damage to Property
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Death of a Spouse
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Death of family members
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Severe Illness
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Inheritance
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Divorce
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Mandatory Job Relocation
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Medical Bills
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Military Service
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Payment Increase or Mortgage Adjustment
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Insurance or Tax Increase
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Reduced Income
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Separation
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Too much debt
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Incarceration
These will all have to be proven through signed letters along with additional documentation that will be submitted to the mortgage company.
