Does My Hardship Qualify For A Northern Nevada Short Sale?

By
Real Estate Agent with Ferrari-Lund ~ Reno's Premier Real Estate Company 61129

Northern Nevada Short Sale Hardships ~ Does your hardship qualify?

Clip Art Short Sale

Many Reno area home owners are turning to short sales to get out from underneath the mounting financial pressure they are feeling in today's declining real estate market.

 A short sale,  simply stated is when you sell your home for less than what is owed on the mortgage and the bank accepts this amount.

Nevada home sellers are not entitled to a short sale simply because they have lost equity in their home or they don't like what it is worth at the moment.

You cannot short sale you home because your neighbors, friends and family are doing it. You must prove, in the eyes of the lien holder, a valid hardship.

As a  Northern Nevada home owner, you must prove a hardship to sell your property as a short sale. It is easy to prove your home is not worth what you own on it so you must be able to provide the lender with a valid hardship.

To do this, sellers must provide the lien holder with a monthly financial statement that shows a negative, or almost negative, cash flow at the end of the month. If you have a positive monthly cash flow with no hardship, your request for a short sale will more than likely get declined. You do not have to be late on your monthly mortgage payment but you do have to show reasons why continuing with your payment will be difficult.

So before you eagerly jump on the Short Sale bandwagon you may want to consider the following list of hardships your lender might consider for short sale approval:

  • DivorceSudden Loss or Reduction in Income

  • Unemployment/Loss of Income
  • Divorce (not always)

  • Death of a Spouse

  • Military Relocation

  • Job Relocation
  • Medical Bills/Medical Emergency

  • Business Failure

  • Natural Disasters

  • Adjustable Mortgage Payments

Here are a couple of things the bank will not consider as a hardship:

  • Pregnancy
  • Unhappy with size, location of home
  • Purchased Another Home
  • Home Value Declined

You do not need to be late or behind on you monthly mortgage payments but you absolutely must prove your lender with a financial hardship if you want short sale approval. Before you stop making your monthly mortgage payments or ask your bank for a short sale make sure you review your financial statements. Consider the above qualifications to make sure your hardship is appropriate.

I often send sample hardship letters to sellers that  give an idea what most banks will consider as a hardship for approving a short sale. I also send short sale information to help prepare them for the short sale process. If you would like additional short sale information I would be happy to send you information as well.

 Does My Hardship Qualify For A Northern Nevada Short Sale?

Posted by

__________________________________________________________________________________________________

REALTOR®

Certified Distressed Property Expert (CDPE)
Certified Default Resolution Specialist (CDRS)
Short Sales & Foreclosure Resource ~ Certified (SFR)
NAR's Green Disignation ~ Certified Green
Certifed Negotiation Expert (CNE)

Ferrari-Lund Real Estate

775.846.5424

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Lisa Wetzel 06/06/2011 09:21 AM
Topic:
Real Estate Market Trends
Location:
Nevada Washoe County Reno
Groups:
Short Sales Specialists
Posts to Localism
Local Expert
All Real Estate - Today & Tomorrow
Tags:
short sale hardships
hardship qualifications
northern nevada home owners

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Rainmaker
659,520
Realty Works Temecula
Realty Works Temecula - Temecula, CA
Real Estate, Temecula, Murrieta, Menifee

Terrie:  This information is very important to anyone thinking of short selling their home!

Jun 05, 2011 03:08 PM #1
Rainmaker
1,272,641
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Terrie - Short sales are extremely common place in my area and I think a lot of homeowners decided to jump on the short sale bandwagon thinking they're entitled to a short sale.

Jun 05, 2011 05:10 PM #2
Rainmaker
511,401
Lisa Wetzel
RE/MAX Realty Affiliates - Carson City, NV
CDPE, SFR carsonvalleyland.com

What a great blog, very informative, very well written!  I agree that many Sellers think a "short sale" is automatic.  There must be a bonafide hardship in order for the lenders to agree and work with sellers ... especially in Nevada!  Great Post Terrie ... thanks for sharing!

Jun 06, 2011 09:20 AM #3
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Terrie Leighton
Ferrari-Lund ~ Reno's Premier Real Estate Company - Reno, NV
Reno Real Estate Agent ~ Selling Homes in Reno

Jane ~ Thank you! I agree, if a home owner is considering short selling their home they must consider all that is involved, and that includes deciding it their hardship is legitimate.

Jun 06, 2011 09:23 AM #4
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Terrie Leighton
Ferrari-Lund ~ Reno's Premier Real Estate Company - Reno, NV
Reno Real Estate Agent ~ Selling Homes in Reno

Michelle ~ We both live in areas where home values dropped drastically over the last several years and my home owners decided to short sale their home or they had no choice, they simple needed to move.  But there were and still are many who simply want out from under their mortgage so they stop making their monthly payment. They really do need to consider the consequences if they do not have what their lender considers a "legitimate" hardship.

Jun 06, 2011 09:26 AM #5
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Terrie Leighton
Ferrari-Lund ~ Reno's Premier Real Estate Company - Reno, NV
Reno Real Estate Agent ~ Selling Homes in Reno

Lisa ~ You and Jim know all to well how the short sale process works, having completed so many for sellers here in Nevada. It is always great to have experienced Realtors help you through the process. But simply wanting and finding the right help does not mean you have a ligit hardship. Thank you for the complement.

Jun 06, 2011 09:28 AM #6
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Terrie Leighton
Ferrari-Lund ~ Reno's Premier Real Estate Company - Reno, NV
Reno Real Estate Agent ~ Selling Homes in Reno

Thank you Lisa for re-blogging!!

Jun 06, 2011 09:29 AM #7
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Terrie Leighton

Reno Real Estate Agent ~ Selling Homes in Reno
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