What hardships qualify for a short sale?
A hardship qualifies when it changed your income or your costs enough that you can no longer keep up with the mortgage, and the home is worth less than you owe. The lender reviews it case by case and decides. You explain it in a short hardship letter and back it up with documents.
These are the reasons we see most often, grouped the way lenders look at them.
| Reason | What changed | What the lender usually asks for |
|---|---|---|
| Job loss | Income stopped or dropped sharply | Layoff or termination letter, unemployment benefits statement, recent bank statements |
| Loss or decrease of income | Fewer hours, lost overtime, a business slowing down | Pay stubs from before and after, or profit and loss statements if self-employed |
| Demotion | Same job, lower pay | Pay stubs from before and after the change |
| Job change | A new job pays less, or the move means you can't keep the home | Offer letter or new pay stubs, and the relocation details |
| Divorce or separation | One income instead of two, or the home must be sold | Divorce decree or separation agreement |
| Death in the family | A borrower's or spouse's income is gone | Death certificate, and proof of the lost income |
| Sickness | Missed work and medical bills | Medical bills or records and proof of the lost income |
| Healthcare costs | Health insurance premiums, prescriptions or ongoing care cost more than the budget can carry | Premium notices, medical bills and a monthly budget |
| Accident | Time off work, bills, lasting injury | Medical or accident records and proof of the lost income |
| Disability, or physical or mental incapacity | Can't work as before, or can't manage the home | Disability award letter or a doctor's statement |
| Aging | Can't do stairs anymore, or the home no longer fits your needs | A doctor's note helps; explain why you have to move |
| Growing family | More people and more costs than the budget or the home can carry | A budget showing the higher costs against your income |
| Cost of living increase | Everyday costs rose faster than income | Bank statements and a monthly budget |
| Property tax increase | Escrow and the monthly payment went up | The tax bill or the escrow analysis from your lender |
| Income taxes owed | Back taxes, an IRS or Georgia payment plan, or a tax lien takes money the mortgage needs | The IRS or Georgia Department of Revenue notice or payment plan |
| Insurance cost increase | Homeowners insurance jumped, so escrow and the payment rose | The renewal notice or escrow analysis |
| House cost increase | The payment, HOA dues or other costs of the home went up | Mortgage statements and HOA notices |
| Repairs the house needs | A roof, foundation, HVAC or similar repair you can't pay for | Contractor estimates, photos or an inspection |
Does the hardship have to be recent?
No. What matters is that it is real, that it is why you can no longer keep up, and that it is lasting enough that catching up is not realistic. Several reasons often add up, like a divorce followed by higher taxes and insurance. Say so in the letter; you do not have to pick one.
What goes in a hardship letter?
Keep it short and true: what happened and when, how it changed your income or your costs, what you have already tried, and why selling is now the best option. One page is enough. We help every homeowner write theirs and send it with the pay stubs, bank statements and tax returns the lender asks for.
When should I call?
As soon as you know you're going to have trouble with your payments, even before you miss one or get a sale date. A job ending next month, a divorce in progress, a tax or insurance bill you can't cover: call then. The earlier we start, the more options you have and the less a foreclosure sale date drives everything.
Is my reason enough for a short sale?
Usually, if three things are true: you owe more than the home would sell for, a hardship like the ones above is why you can no longer keep up, and the home is not listed with another agent. The lender decides. Check how much time you have before the sale, or call (404) 861-3575 and we will talk it through.
Who is a short sale not right for?
If the home would sell for more than you owe, a regular sale may let you keep the difference. If the lender has offered a loan modification you can afford, that may be the better path. If your home is listed with another agent, please talk to your listing agent; we do not solicit listed homes.
Last updated October 22, 2026 by Constance Boyce, REALTOR®, SFR®. General information, not legal or tax advice. We do not solicit properties listed with another agent.