A couple reps I've spoken to say I have a VERY legitimate hardship case, but I always take what they say with a grain of salt because they make their money by doing short sales, so of course, they aren't going to tell me that I have no chance. But based on what people here have seen or done regarding hardships, I'm curious if I have what banks would consider a legitimate hardship. I know it all depends on the lender, but still...just looking for opinions.
Bought home in Orange County, CA in 2004 for 510K. Currently home is probably around 340K. About 2-3 years ago, my wife lost her job. She tried looking for a few months but nothing was available so she decided to start her own company. The start up costs and lack of incoming revenue from her side (she was previously making about 60K a year) caused us to incur about 75K in credit debt (about half due to company start up, other half just trying to make ends meet). That's basically our primary hardship...about 50-60K in CC debt that we've been slowly trying to chip away at. I also had borrowed 50K from my father to help out as well...but that occured many years prior and was assistance to help buy our first home, but I still owe him about 30K. Economically, we were hurting pretty bad for about 2 years, but never missed or was late on a payment. Fast forward to today...things are better economically. I make more money and my wife's business is stable. But because of rising costs, feeding a family of 5, and credit card debt that just won't go away, we basically live check to check. I have no savings and the only time I have more than 3K in the checking account is because we just got paid but it's soon gone with the mortgage/bills, etc. I have a 401K and IRA that is probably worth 15K combined. My mother's health has declined and I pay about 200-300 a month to help her out because her social security isn't enough.
I've listed them out in a hardship letter that's going to be submitted to the bank. As I mentioned earlier, my agent thinks we have a very good case, but admits that me not being willing to be late will delay the process. If it weren't for my wife's business, I probably would have been willing to miss a payment or three, but because she relies on good credit to run her business (and the home is in both our names) that's not possible.
I do want to add that I've refinanced twice (first was to get out of my IO loan and into a 30 year fixed, which caused my payments to go UP) and second was via HARP when it first came out.