Remember that with any of the Foreclosure Options we cover, although you can do it all yourself the chances of success greatly improve when you hire qualified and experienced professionals to help you. Ensure that all of your assets and liabilities are listed on your financial statement.
Some lenders require the borrower to fill out a prepared hardship form or statement, so the borrower should check with the lender before writing a letter.
Whatever your situation, the hardship letter should illustrate that you have a genuine need for the short sale, both in the description of the events as well as numerical justification.
Not all clients will qualify for a short sale. However, you cannot do a short sale by yourself, as some states require you to work with a short sale specialist. I really love my house, but I know that I cannot afford it.
Please let us know if you need any additional financial information. There is no point in giving an explanation that does not conform to the accepted hardships. This type of hardship letter is part of the normal process and something the borrower must provide.
You should also not make any promises that you cannot keep.
You should only state the facts and let your lender judge the situation by themselves. The alternative in light of our dire financial condition is a long and expensive foreclosure lawsuit for the bank with the same inability to collect any deficiency balance.
I deeply appreciate your help and understanding in this matter. Hence, do not indicate or imply that the lender can be blamed for your situation. If a homeowner needs to execute a short sale of their home or other property in order to relieve some of their debt, the real estate agent may require a short sale hardship letter as part of the process.
Keep your request specific In order to inform your lender about what you want, state the purpose of the letter whether it is a short sale or a loan modification.
The letter should include: Short sales are real estate transactions in which the amount paid for selling the property is less than the amount still owed on it and this is provided as payment to the lender. Also, to explain your case in detail, you can use the subsequent paragraphs.
Hardship Letter Template 21 How to write a hardship letter Many people want to know how to write a hardship letter and what to include in it. This will depend upon many factors, including your credit history before the short sale. Also, as the final decision about loan modification will be made by your lender, you should never insinuate that your situation is due to the lender.
That means that you have to write it properly, without any spelling or grammar mistakes. That it is in your best interest is clear, so you do not need to focus on that.
A short sale hardship letter is written by the property owner to the lender to explain why the owner is behind on his or her mortgage payments. As such, borrowers should avoid looking on the bright side when writing a hardship letter. Submit your letter of authorization to the agent.
That is common sense and it does not provide any new information on your ability or inability to meet your financial obligations. A short sale is a real estate transaction in which the amount received for the sale of the property is less than the amount owed on the property. Banks are not required to participate in the HAFA program.
While sellers hoping to short-sell their property should not misrepresent the facts or lie, the presentation of the hardship circumstances makes a tremendous difference, especially regarding what hope exists between the lines. While a well-written hardship letter does not guarantee approval of the short sale, if these three ideas are conveyed, the hardship letter will be effective.
Other reasons may also be accepted.Use our Sample Short Sale Cover Letter and attach a Short Sale Financial Hardship Letter similar to the Sample provided below. The Financial Hardship Letter can be used with Short Sales, Loan Modifications and Deed in Lieu of Foreclosure and generally covers the reason for your economic hardship.
Writing a hardship letter is mandatory if you want your lender to consider you for a short sale, loan modification, and temporary repayment plan. When you’re writing a hardship letter for loan modification, it is important for you to keep in mind that lenders know the reason you’ve fallen behind with your mortgage payments.
If you have to short sell your property as a way to avoid foreclosure, your realtor may want you to write a hardship letter for short sale. Short sales are real estate transactions in which the amount paid for selling the property is less than the amount still owed on it and this is provided [ ].
When you seek a short sale or a loan modification, the bank demands you explain why in writing. Here are some hardship examples showing how to make your case. When you seek a short sale or a loan modification, the bank demands you explain why in writing. Writing a hardship letter can be downright depressing: Many people have no idea how bad.
(explain what caused the financial hardship. Ex: job lay-off, death in the family, medical emergency, etc.) and we can no longer afford the new payments.
At this point we are trying to avoid foreclosure and/or bankruptcy and would like to discuss with you the possibility of getting a short sale approval that could be beneficial for both parties.
Loss mitigation departments will have hundreds or thousands of hardship letters to go through, so keep your letter short and to the point. Describe what caused your hardship, how you have tried to remedy the situation and why the hardship will not improve, and a short sale is your only option before foreclosure.Download