One of the more critical pieces of your short sale package is the Short Sale Hardship Letter. Lenders are concerned about limiting risk and their losses With a Short Sale Hardship Letter, your basically saying…. “hey, I’ve got a problem so you have a problem”. The hardship letter will lead the bank to believe foreclosure is imminent.
I wouldn’t suggest writing that!! But really that is what you are trying to convey to the lender
Your financial hardship should be believable and supported by documents. With the hardship you need to show your inability to pay and the non-payment will continue into the foreseeable future.
Show three things in your short sale hardship letter:
- Fair Market Value of your home has decreased
- You have experienced a hardship creating an inability to pay your mortgage
- Your mortgage is currently not be payed or will be in default soon
Other tips for your short sale hardship letter
- Clearly state the circumstances that led you getting behind on your mortgage. Keep it simple.
- Explain your current situation and what you are doing to try and get back on your feet.
- Be truthful.
- Neatly hand write your letter- it is more personal and can make the negotiator connect more with your financial hardship.
- Please, please try to keep your hardship letter to one page! Remember you are dealing with a 9-5 employee that doesn’t know you from a whole in the ground. Keep it simple and keep their attention.
Sample short sale hardship letter- remember yours should be hand written
Bank Name and Address
Your Address and Account Number
To whom it may concern,
I purchased my home in 2004 at 1 Made Up Street, Anywhere USA where I had been gainfully employed at “my job” for many years. In 2007 due to the economy, my position was cut and I was subsequently laid off.
Since being laid off, I was on unemployment for almost 2 years drastically reducing my monthly income. In May of 2009 I took a job for $20,000 a year less than my previous salary. I have depleted my saving trying to keep my mortgage current. Between my mortgage, mounting debt and property repairs I cannot complete do to lack of finances, it is no longer feasible for me to keep my home.
My current situation, with no forseeable improvement, unfortunately does not allow me to continue to pay my mortgage. I purchased my home for $290,000. The current value is in the neighborhood of $220,000 and seems to be in decline. I must do a short sale or my house will end up in foreclosure.
Please consider the circumstances and accept the short sale as my payment in full. If you have any questions please feel free to contact myself or my agent.
Distressed Home Owner
The short sale hardship letter is a critical piece of a short sale approval, take it seriously. Take the time to write it. You want to be able to clearly and concisely convey what your hardship is that is leading you to a short sale. Your Short Sale Realtor Should be able to help you and make suggestions.
This article, The Short Sale Hardship Letter, was provided by Kevin Vitali of EXIT Group One Real Estate. If you have any questions regarding your options to foreclosure or a short sale call Kevin, your Massachusetts Short Sale REALTOR, at 978-360-0422.
Massachusetts Short Sale REALTOR providing services in Essex County, including Amesbury, Andover, Beverly, Boxford, Bradford, Essex, Georgetown, Gloucester, Groveland, Hamilton, Haverhill, Ipswich, Lawrence, Lynn, Lynnfield, Manchester-by-the-Sea, ,Marblehead ,Merrimac, Methuen, Middleton, Nahant, Newbury, Newburyport, North Andover, Peabody, Rockport, Rowley, Salem, Salisbury, Saugus, Swampscott, Topsfield, Wenham, West Newbury
Massachusetts Short Sale REALTOR providing services in Middlesex County, including Acton, Arlington, Ayer, Bedford, Billerica, Boxborough, Burlington, Carlisle, Chelmsford, Concord, Dracut, Groton, Lexington, Lincoln, Littleton, Lowell, Malden, Medford, Melrose, North Reading, Reading, Stoneham, Stow, Sudbury, Tewksbury, Tyngsborough, Wakefield, Westford, Wilmington, Winchester, Woburn
If you have a short sale anywhere in Massachusetts or the country I will be happy to find you a capable short sale agent to help you with your needs. Just give me a call. 978-360-0422