Northern Nevada Short Sales ~ Does My Hardship Qualify for A Reno Short Sale

Northern Nevada Short Sale ~ Does My Hardship Qualify For A Reno 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 a seller owes more on their home than it will sell for in today’s real estate market, so the home owner asks their lien holder(s) to accept less than what they owe them.~

Do I Qualify for a Reno Short SaleNevada 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 neighbor, or your friends or because you have  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. You must show you are no longer able to make your monthly mortgage payments. 

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:

  • Sudden Loss or Reduction in IncomeWhat is a Short Sale Hardship
  • 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
  • Loan Modification Denied

You do not need to be late or behind on you monthly mortgage payments but you absolutely must provide 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.

Northern Nevada Short Sales ~ Does my Hardship Qualify For A Reno Short Sale?


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