What is a "hardship" and what kinds will lenders consider?
Simply put, a hardship is any circumstance that has caused a financial and/or emotional burden on the borrower. It is not weighed by its severity but by its financial and/or emotional effect on the borrower and their ability to repay the loan or sell the property. There are several hardships a lender will consider. The most common are: physical or mental illness of the borrower or family member; death of a spouse or family member; divorce; marital separation; medical bills; disability; job loss; business failure; pay cut; hours worked reduced; active military duty call up; incarceration; employment transfer; house repairs overwhelming; payment shock on adjustable rate mortgage reset; and, declining property values.
The last hardship, "declining property values", has only been considered an acceptable hardship recently. In addition, none of the hardships are limited to just owner-occupied properties. They can be rental houses, speculative construction, vacation homes, condominiums, farms, multi-family properties, assisted living facilities, vacant land, commercial properties, mobile homes and more. Finally, the payments on the mortgages do NOT have to be past due for the hardships to be considered.
If you are not sure if your situation can be considered as a hardship, please feel free to contact us for a no obligation, confidential consultation.
"Property Solutions of Florida...a name you can trust, experience you can count on!"