What “hardship” is acceptable for a lender?
Below you will find a list of “hardships” that are frequently accepted by mortgage lenders: · Job loss, unemployment or significant income loss · Divorce or separation · Excessive medical bills · Death of spouse · Military service · Adjustment in mortgage payment or unforeseen increase in living expenses Most mortgage companies or lenders require the hardship letter pursuant to a short sale. In the hardship letter, it is important to present the facts clearly, and above all else, be honest. The hardship letter must be able to prove the situation that caused you to fall behind on your payments and the excuse for falling behind must be legitimate and provable. A hardship is defined real and the mortgage company believes the loan is likely to become delinquent.
