In order to participate in a short sale, a homeowner must be able to demonstrate that he/she is in a hardship situation, or a material change in their financial situation that has or will affect their ability to pay their mortgage.  Examples include:

1. Job loss
2. Business failure
3. Damage to property
4. Death of a spouse or family member
5. Severe illness
6. Inheritance
7. Divorce
8. Mandatory job relocation
9. Medical bills
10. Military service
11. Payment increase or mortgage adjustment
12. Insurance or tax adjustment
13. Reduced income
14. Separation
15. Too much debt
16.  Incarceration  

Or a combination of the above.

In other words, banks are looking for the three "M"'s (or a combination of them): Money, Marriage problems,or Medical problems.  
 Information deemed acurate but not guaranteed. HarderAndSmarter Realty is not engaged in the practice of law nor does it give legal advice.