If any home owner is considering a Loan Modification, Short Sale or other alternative to foreclosure which involves the bank making some form of concession, it is usually necessary for the home owner to be able to demonstrate a valid hardship.
The Distressed Property Institute defines an acceptable hardship as:
A material change in the financial situation of a homeowner that is or will affect their ability to pay their mortgage.
There are many, many reasons and situations which might create a Financial hardship which may be acceptable to a bank and give them reason to work with you. Here are just a few:
- Change or Loss of Employment
- Medical Illness
- Death of Spouse or Family Member
- Relocation
- Military Service
- Divorce or Separation
- Accident or recent Disability
- Insurance or Tax consequences
- Damage to Property
- Incarceration
- Loan Terms/Adjustments
Essentially, in order to prove a hardship, there has to have been a change in circumstances between when the loan was made and the date of the hardship request. If you’ve faced a recent hardship and are falling behind on payments or think you soon will be behind on payments, don’t bury your head in the sand. There are many resources available to you, or give us a call. We can help point you in the right direction so that you can make informed decisions!
Colleen Fischesser, Washington State Designated Broker & Owner of RE/MAX Select R.E; Member NWMLS, SKAR, WAR, Voted "Best in Client Satisfaction" Seattle Magazine 2006,2007 & 2008. Representing home Buyers & Sellers for nearly two decades. 
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