Causes of Financial Distress
Most cases of financial hardship and distress are due to one of the causes listed below. This is not a casual list - the items on this list are recognized by lenders as legitimate causes of financial hardship.
- Loss of Job
- Mandatory Job Relocation
- Reduced Employment Income
- Reduced Self-Employment Income
- Military Service
- Business Failure
- Damage to Property
- Severe Illness/Incapacity
- Medical Bills
- Divorce or Separation
- Death of a Spouse
- Death of Family Members
- Inheritance Tax
- Payment Increase/Mortgage Adjustment
- Insurance or Tax Increase
- Too Much Debt
- Incarceration
If you want to use one of these causes to help make the case for either loan modification or a short sale, you ned to be able to show to the lender's satisfaction both the cause and the degree of the hardship.