The qualifications for a short sale are slightly different than for a traditional listing.  The major difference is that in order for a bank to accept a short sale, the borrower must have a demonstrable financial hardship.  The borrower must prove the existence of this hardship through a signed letter that will be submitted to the mortgage company along with additional documentation.

A hardship can be defined as a material change in the financial situation of a homeowner that is or will affect their ability to pay for their mortgage. 

You must have a hardship to qualify for a short sale.  Examples of acceptable financial hardships are:

1. Loss of Job
2. Business Failure
3. Damage to Property
4. Death of a Spouse
5. Death of Family Members
6. Severe illness
7. Inheritance
8. Divorce
9. Mandatory Job Relocation
10. Medical Bills
11. Military Service
12. Payment Increase or Mortgage Adjustment
13. Insurance or Tax Increase
14. Reduced Income
15. Separation
16. Too Much Debt
17. Incarceration