The seller must submit a letter of hardship that explains why the seller can not pay the difference due upon sale, including why the seller has or will stop making the monthly payments.

A few examples that do NOT constitute a hardship are:

1. Bad purchase decisions. Blowing your paycheck on a home theater system with surround sound does not qualify as a hardship.

2. Unhappy with the neighbors. Even if every home on your block has turned into pot growing houses, that will not qualify as a hardship.

3. Buying another home. The lender will not care if you have decided the home is no longer suitable for you or your family and, in fact, if you have bought another home, you might not qualify at all for a short sale.

4. Pregnancy. Increasing the size of your family or starting a family is not considered a hardship.

5. Moving into an apartment. If you decide to move out of your home, that is a lifestyle decision and not a very good reason to abandon your home.

Examples of hardship are:

6. Unemployment

7. Divorce

8. Medical emergency / sudden illness

9. Bankruptcy

10. Death