What can homeowners use as a justification for initiating a short sale?

Homeowners can initiate a short sale primarily due to financial hardship. This situation arises when they are unable to keep up with mortgage payments, typically due to factors such as job loss, medical expenses, or other financial strains. A short sale allows homeowners to sell their property for less than the amount owed on the mortgage, with lender approval, to avoid foreclosure.

While other factors like market conditions or personal desires (such as wanting to upgrade) may influence a homeowner's decision-making process regarding their property, they do not constitute valid grounds for compelling lenders to agree to a short sale. Lenders are chiefly concerned with recovering as much of the outstanding loan amount as possible, and financial hardship is the primary reason that justifies a short sale, as it reflects an inability to meet the financial obligations associated with the property.