Dealing With Delinquency

About financial hardship.

Financial hardship means some change in circumstances since the borrower purchased the home, which has made it impossible for them to continue to afford their mortgage payments.

Do I need to demonstrate financial hardship to get approved for a short sale?

Some short sale programs require that you demonstrate that you have suffered hardship. However others, such as the FHA “Streamlined” program, look only at how the numbers work out. The seller does not have to submit any evidence of hardship.

Contents of a successful hardship letter.

A hardship letter outlines the circumstances that have led to your financial hardship (e.g. job loss, increased medical expenses), and what you have done to try to deal with the situation. It explains that those things haven’t worked out, and your only option to avoid foreclosure is attempting a short sale.