What Should Be in a Hardship Letter for a Short Sale?
A short sale is the sale of a home for less than the amount the homeowner owes his lender. Short sales must be lender-approved. Lenders will approve short sales if they believe that the homeowner might fall into foreclosure if he does not sell his property. To convince their lenders of this possibility, homeowners must submit a hardship letter, which explains their financial situation and why they need the short sale.
Other People Are Reading
-
Top Block
-
Start a hardship letter for a short sale just as you would any other business letter. Date the letter, skip a line, then in a block of left-aligned text, write the lender's name, address and fax number. A line below this, add a subject line such as "Re: Hardship Letter for the Short Sale of (Your Address Here)." Skip another line and add a salutation, such as "Dear creditor."
Letter Body
-
Start by explaining when your financial hardship began and state the reason for the financial hardship, such as a layoff or unexpected medical bills. Explain that it's no longer possible for you to comply with the original terms of the loan. Ask for help avoiding foreclosure via approval to short-sale the home. Explain that a short sale is necessary because you owe more on your mortgage than the home is now worth, so a straight sale is unlikely to yield any buyers. State how you can be reached, should a lender's representative have any questions or need to request any documents from you. Add whether you're enclosing any supporting documents. End with a statement saying that the information provided in the letter is true and correct.
-
Bottom Block
-
Skip a line after the end of your last paragraph. Include a closing such as "Sincerely" or "Warm Regards," aligned with the left margin of the page. Skip a couple of lines below this, then type your name. Between the closing and the typed name, sign your name in pen. Skip a line or two below the typed name, then add your address and mortgage account number to make it easy for the lender to look up your information.
Enclosures
-
When submitting a hardship letter, it helps to also submit supporting documentation of your hardship. This can include bank statements, late notices on other bills, your most recent tax returns and recent pay stubs or unemployment check stubs. This will speed the process along, since such documents are usually requested after receipt of hardship letters anyway.
-
