What Are The Hardship Requirements to Short Sale?

    Every homeowner in the Orange County area wants to avoid foreclosure and will choose short sale to avoid the
    damages and consequences that come from going through foreclosure. Even though some Orange County Realtors
    might say that all home owners will qualify to short sell their homes, the reality is that some won’t because; they
    don’t have a legitimate enough hardship.

    What Qualifies as a Hardship?

    Due to the economic recession, some of the most common reasons for hardship include: job loss, prolonged
    unemployment, health issues that have left the homeowner with a lot of medical bills, divorce, job relocation or
    the death of the primary income earner.

    Some homeowners who are in a home with negative equity or an upside down mortgage and want to short sell
    their Orange County homes will not qualify for the short sale process especially if they have assets and enough
    income coming in every month to make their mortgage payments on time.

    You Need a Short Sale Specialist

    The critical step to getting an Orange County short sale approved is to write a great short sale hardship letter but,
    before attempting to write a short sale hardship letter, every home owner in Orange County should contact a top
    Orange County short sale specialist like Fred Sed & Associates, because, a short sale specialist doesn’t charge any
    upfront fees, they only get paid once the short sale has been approved and they have experience with helping
    Orange County homeowners write short sale hardship letters.

    How to Write a Great Short Sale Hardship Letter

    The short sale hardship letter is the homeowners chance to tell the lender the nature of their hardship and explain
    the following:

    • How their financial hardship started
    • What they’ve tried to do to fix their financial hardship and why in spite of their efforts, they’ve been unable to fix their present situation.
    • Why things will get worse for them in the future if the financial situation doesn’t improve.

     

    Short Sales Hardship Letter Tips:

     

    • Don’t be optimistic – If the hardship letter sounds optimistic and the lender thinks the homeowner will be able to make their mortgage payments again, they will not approve the short sale.
    • Use figures – An Orange County short sale hardship letter should include facts and figures. For example: the homeowner borrowed $50,000 from their credit cards to pay their mortgage.
    • Make it easy to read – The goal of the hardship letter is to make it easy for anyone to read, it should not use complicated or elaborate words because, this will only lead to the homeowner not being able to “paint an accurate picture” in the readers mind of their present situation.

     

    Practice Sound Financial Management

    During the 20 to 30 days that the homeowner is waiting for their short sale to be approved,
    they should follow their Orange County real estate agent’s advice and also practice sound financial management
    including not over-spending or going on a lavish vacation. Why is this important? If the lender finds out that the
    homeowner spent a lot of money on other things, they will deny their Orange County short sale.

    Trackback from your site.

    Leave a Reply

    About our blog

    Our agents write often to give you the latest insights on owning a home or property in the local area.