A hardship is definitely an adversity. Anything that affects you in a negative way is considered to be a hardship. The only thing is that these hardships have to be explained to your bank. Your hardships have to be explained to the bank in a Hardship Letter. As the name suggests, you have to highlight and explain your hardship matters to the bank in this letter.

In some cases, you might also have to attach some documents which will act as proves for the hardships. If your hardship is not considered to be legitimate by the bank, then there are possibilities that the bank will decline your short sale request. The hardships which are considered legitimate by the lenders can vary according to different situations. In all situations you can never be sure of the opinion of the bank about the hardships you have stated.

In most cases, a legitimate hardship should be of monetary importance. This should show that you are having financial problems that make it hard to pay mortgage payments regularly. The Hardship Letter that you write to the bank should very logically explain why your circumstances have changed and caused you to be unable to pay the loan. Your bank might usually define a hardship as a situation which gets difficult for you to endure. There is a long list of hardships which can very easily be considered as legitimate by the lenders.

Some of these hardships include the following situations:

  • Loss of job which you had held previously at the time when the loan was issued to you.
  • A great decline in your income from a job or another source.

A borrower losing a tenant

  • There has been an unaffordable adjustment in the mortgage payments.
  • Unforeseen and unexpected increase in your living expenses.
  • Someone in the family getting seriously ill or injured.
  • Illness or injury to someone even in the extended family, where it requires you to relocate.
  • Job relocation when your home is upside down and you have no equity.

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