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Quick Question for Hardship Letter

Discussion in 'Short Sale Outpost' started by JessPhil, Dec 9, 2008.

  1. JessPhil

    JessPhil LoanSafe Member

    My employer has let me go as an employee and will reclassify me as self-employed contract worker. They are doing that with about a 100 workers that do the same job. I haven't signed the contract, yet so I have had no self-employed income. I have not had wages as employee in a few months, either. The short sale officer will be able to see this because I do not have deposit into my account.

    Would you state on the hardship letter that I have lost my job as an employee?

    Will the bank contact my work asking about whether I have lost my job? My emloyer is presently trying very hard to convince all of us that this will not hurt us. Because of this, I am unsure how they will respond to questions from a bank office regarding whether I have lost my job.

    Thanks for your help!
  2. faith

    faith LoanSafe Member

    Hello JessPhil,
    I am sorry for what happened to your job as an employee. You can tell your lender that you lost your job as an employee and your employer decided to switch you over from employee to self employed, which explains why you don't have a pay stub. And since you were switch to self employment you don't have self employment income statement and you're not aware of what is going on, If you're self employed you need to get a TIN(Tax Identification Number) from the IRS and whatever your business as self employed you need to get a permit from the County Clerk's office.

    As far as your lender asking for a proof of income they normally require the last two months of your pay stub and the last two years of your W2's. When I lost my job due to disability caused by uninsured driver, I have to give my lender a printout payment from the disability insurance office This is one of the lender's requirements to make a decision whether you qualify for loan modification or approve you of short sale.

    Hope this helps.

    Thank you

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