Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

865-675-8326
RE/MAX Preferred Properties
[email protected]

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Knoxville Short Sales – What Constitutes Financial Hardship?

Knoxville Loan ModificationsIn order to successfully complete a Knoxville short sale, homeowners must prove they've experienced "financial hardship." This term is actually one that has been coined by lenders as something a homeowner must prove if they're doing a short sale. While the term may seem simple enough, for a homeowner facing foreclosure, this term can be a little more difficult to explain. So, what exactly does "financial hardship" mean? In simple terms, financial hardship is something that changes your life completely. It is something that makes your future uncertain and is something that is not easily fixed. It is something that makes your financial situation stressful and altogether overwhelming. It is a financial struggle that makes paying your bills difficult, if not impossible. There are many different situations that lenders consider to be financial hardship. Some of those possible reasons for financial hardship include: job loss, relocation, death in the family, divorce, incarceration, reductions in income, illness or injury, among other things. These specific scenarios are situations that make it difficult to pay your mortgage, thus making a Knoxville short sale necessary. But, how do you go onto explain this to your lender? How do you explain that your child falling ill made it impossible to pay your mortgage? Or that the death of your wife caused significant emotional and financial ramifications? Financial hardship is more than. just a few words or a few sentences explaining why a Knoxville short sale is necessary. It is months and sometimes even years of attempt after attempt to try and recover financially. In a majority of short sales, a hardship letter is composed to help explain what happened that made paying your Knoxville mortgage impossible. In addition, bank statements and pay stubs are provided as well to provide additional evidence. While writing a hardship letter can be difficult, it can humanize your situation to your lender and help offer a further story that financial records can't quite offer. Are you underwater on your Knoxville home? Are you facing foreclosure? If so, please do not hesitate to contact my team and I. We've helped countless homeowners explore their options to avoid foreclosure on their Knoxville home and successfully have completed many short sales. You can contact Rick at 865-696-9002 or via email at [email protected].

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