BluefoxToday blog : Las Vegas Short Sales: What is a Short Sale Hardship?

Las Vegas Short Sales: What is a Short Sale Hardship?

Many people would like to roll the dice on a Las Vegas or Henderson short sale and just be done with their homes simply because they do not like what it is worth right at this moment.  Unfortunately a large percentage of lienholders will not give debt (or deficiency) forgiveness without a solid hardship.  It would be great to walk away from our assets easily without any just cause or ramifications other than saying “I don’t like what my home is worth today and it will never come back to the same amount that my mortgage is.”

So there you have it – an upside down home is not really a justified hardship for a Las Vegas short sale.

Here is a small list of some things that do validate a hardship and make a Las Vegas short sale easier to obtain:

  • Loss or Reduction of Income
  • Loss of Assets
  • Job Loss
  • Illness or Disability
  • Medical Bills
  • Death
  • Military  Relocation
  • Civilian Job Relocation
  • Separation or Divorce
  • Business Failure
  • Increase in Household Operating Expenses (utilities, taxes, HOA, adjustable rate mortgage, etc)

When you are selling your home as a short sale, you will be required to write a “hardship letter” as part of your short sale packet and maybe even have to prove your hardship if asked to do so.

Now there are an abundance of checks and balances during a Las Vegas short sale.  One of them is the BPO process.  I have always wondered what a lienholder thinks when they see a shiny brand new Lexus, Land Rover or Beemer sitting in the driveway during one of these secret exterior orders.  It happens more often than one would think.

When you are listing your Las Vegas or Henderson home as a short sale, you may want to make sure your hardship is valid.


Thanks,  Renée Burrows 702-580-1783 Broker/Owner, REALTOR®
 

 

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Comment balloon 23 commentsRenée Donohue • January 13 2011 10:40AM

Comments

Do they actually receive lienholder approval with the new Beemer, Lexus or H2 in the driveway?  LOL

Posted by David Krushinsky, AZ MB-0949619 MLO NMLS #202115 (Dk Home Loans, LLC) almost 8 years ago

Renee:

Such good advice for potential short sale Sellers. Yep, you can't just walk away (well, you can but that's another story) and you need to have a hardship to sell.

Just because you are getting married and want to buy a new home together, does not qualify you for a short sale on your current home. I've got one of those I am counseling right now!

Happy 4th Iced In Day from Atlanta!

MyMidtownMojo.com

Posted by Thom Abbott, Midtown Atlanta GA Condos For Sale (MyMidtownMojo.com |770.713.1505 | Intown Atlanta GA Condo Living) almost 8 years ago

Oh Renee it is so tough for some people.  There are true hardships, loss of job, medical hardships, etc as you mention.    It can happen to anyone.  I am supposed to close tomorrow on a property that was purchased from a short sale during the year and I am still waiting to the clearance due to title issues.  In another case people are selling short sale and need to rent and that is whole other issue.

Posted by Pat Laracy Baker, Realtor, Green, ABR, Holliston, Massachusetts (Realty Executives Boston West) almost 8 years ago

Renee - a good explanation of the term and meaning of "Hardship". Every short sale contains different challenges. The client just needs good and honest advice upfront reflecting their specific situation.

Posted by Doug Anderson, Bay Area Real Estate Views (Tucker Associates Real Estate Services) almost 8 years ago

Great post, Renee. The key message being that a homeowner's lender will not likely approve their home for short sale just because the home is worth less than their mortgage. Lenders want to know if you can still afford the monthly payments before deciding whether to allow you to pay off the mortgage for less than what you owe.

Posted by Bill Burchard, Broker, Realtor, Representing Buyers and Sellers (3B Realty: 951-347-3818, CA) almost 8 years ago

Renee - Appearances are everything. If it appears you have assests, and the means, it may appear you have a problem with a short sale approval.

Posted by Claude Cross, Charlotte NC Homes For Sale (Homes By Cross, Inc. ) almost 8 years ago

David:  I really wonder.  Many short sale agents don't even know about the multiple exteriors performed so they probably don't tell their clients to park the new $75K car in the garage.

Thom:  I remember you telling me about that ;)

Pat:  You are correct that it can happen to anyone.  I have heard of people with a true hardship blowing all their savings away towards their bills when there are other options - and then they have no money to rent when they need to.

Doug:  True!

Bill:  You got it and thanks for the reblog (again!)

Claude:  Definitely could cause issues!

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 8 years ago

Thanks Renee for itemizing what may constitute a hardship; most people don't think of anything besides loss of income.

Posted by Peggy Chirico, REALTOR® 860-748-8900, Hartford & Tolland County Real Estate (Prudential CT Realty) almost 8 years ago

Renee - It's amazing how many people think they can just walk away from their home because they feel like it.  Great list of what hardships actually are.

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) almost 8 years ago

Peggy:  There can be so many causes for hardship and some are not listed here - definitely

Michelle:  I think I definitely threw out what is not a hardship :)

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 8 years ago

Renee, this is a great list for potential short sale home owners to keep in mind.

Posted by Damon Gettier, Broker/Owner ABRM, GRI, CDPE (Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert) almost 8 years ago

Renee

I like the way you are writing these much needed and sought after topics. Great post.

Posted by Tom Braatz Waukesha County Real Estate 262-377-1459, Waukesha County Realtor Real Estate agent. SOLD! (Coldwell Banker) almost 8 years ago

Renee

I like the way you are writing these much needed and sought after topics. Great post.

Posted by Tom Braatz Waukesha County Real Estate 262-377-1459, Waukesha County Realtor Real Estate agent. SOLD! (Coldwell Banker) almost 8 years ago

Most financial forms ask for the make, model, and year of the borrower's car so I do not think a picture of it should make much difference.

Posted by Marcy Moyer, Probate, Trust, and Investment Specialist (eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales) almost 8 years ago

Thanks for this post! Helping folks understand will help folks who are upside down.

Cal

Posted by Cal Yoder, Homes For Sale in Lancaster PA - 717.413.0744 (Keller Williams Elite) almost 8 years ago

Very nice, straight forward & honest! explanation Renee for all to understand that are wondering what their options are.

Posted by Steve Scheer, Highlands Ranch Real Estate - Denver Real Estate (Realty Oasis - Metro Brokers) almost 8 years ago

Renee: As always great advice. Who do some think they are fooling. Fancy cars boats and toys and what a hardship they have.

Posted by Surprise Arizona Realtor Jim Braun Sun City Grand Active Adult Communities, Surprise AZ real estate Phoenix West Valley (Coldwell Banker Residential Brokerage Jim Braun Sun City Grand Az ) almost 8 years ago

Renee - this is well written, and i like it so much, that I'll reblog it. Have a warm day, we have bitter cold here it Tennessee today. 16 degrees at 09:00 a.m..

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 8 years ago

Renee I think someone needs to make a short sale badge for you. I think that is the only one missing over in the side bar - LOL

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) almost 8 years ago

You forgot "you already bought another house and don't want this one anymore" as a "hardship". People, sheesh!

Posted by Eric Michael, Metro Detroit Real Estate Professional 734.564.1519 (Remerica Integrity, Realtors®, Northville, MI) almost 8 years ago

Well Said!  And best to watch those checking account statements!  Nieman Marcus Purchases? Expensive Dinners?  LOL!

Posted by Lauren Stark, Luxury Real Estate Agent - Las Vegas-Henderson NV (THE STARK TEAM-Las Vegas Luxury Homes & Condos) almost 8 years ago

Larry:  We just had another cold snap but not that cold!

Eric:  TRUE!

Lauren:  Definitely!

Everyone else:  Thanks for the insightful comments!

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 8 years ago

Renee,

There probably have been a bunch of totally creative hardship descriptions that are way off from the official list. Would be fun to read some of them.

Posted by Esko Kiuru over 7 years ago

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