Do you have to have a hardship in order to have a short sale on your house or can you just ask the bank for 1?

Question

Do you have to have a hardship in order to have a short sale on your house or can you just ask the bank for 1?

Answer 1

Dear, you are going on and on about this and there is no need to.

The process works the same as when you first got your loan, although you HAVE to be in foreclosure first.

You submit all of the same documents you did before, income, assets and credit report.    

If you have any assets or other means of paying your mortgage you will be denied.

You also need to explain why you are presently unable to meet the commitment you previously made.   Your spouse died.    You were stricken with a disabling disease.   You need to make it clear you are not in your situation because you bought a boat, quit your job, or whatever.

Answer 2

No matter how many times you ask this question, the answers will remain the same.  You do NOT get short sale approval from a bank just because you feel like you want a short sale.  If you can make the payments on time (regardless of whether or not the property value has fallen), you aren't going to get a short sale approval.

Most short sales are approved for those who had ARM's, and their payments increased way beyond their capabilities.  As well, others in serious financial distress will qualify.

Answer 3

Yes, you have to submit a hardship package that verifies you actually have a hardship. Also, many lenders require you to go into default in order to qualify for the short sale. That way they know you're serious. If the short sale doesn't go through, they foreclose and your credit is ruined. A short sale is bad, but not as bad on your credit. So, they give you incentive to get the short sale done in a timely manner.

Answer 4

This is a legitimate question.

If your loan amount ( mortgage ) on your house is below the market value, you have every right to consider doing something about it.

The answer depends on the State you are in, and the type of mortgage that you have. If you are in California and you have a trust deed, and not a mortgage, and you are upside down ( loan more than house value )  then it will be worth your while to consult a real estate attorney.

Answer 5

How many times are you going to ask this?

Why would the bank agree to take less than you owe if you are on time? What incentive would they have?

Answer 6

So if you gave someone a $200,000 loan and then they said they just didn’t feel like paying it all back would you just agree to taking $120,000?  

Yes, you have to prove you have a genuine financial need for a short sale. You can’t get out of responsibility just because you don’t like the way it worked out for you.

Answer 7

Do you have OCD that makes you ask the same questions over and over and over again?