Short Sale Hardship Letter Sample |
One Major Piece Of The Short Sale Package
Here is a simple guide that will help you write your short sale hardship letter that your lender will require when you are trying to sell your home as a short sale:
Start from the beginning - Now, your hardship letter doesn't have to begin with "I was born in..." but it is helpful to mention how long you've owned your home and how you were able to pay your mortgage before your hardship.
State the facts of your hardship clearly - Your hardship is the written statment of why you are no longer able to afford your monthly mortgage payment. A hardship can include scenarios such as unemployment, divorce, separation, death of a family member, reduction in income, military reassignment, job relocation, incarceration, increase in mortgage payment, or any event that has affected your finances where you are not able to afford your mortgage.
Describe how you have attempted to solve your problem - Have you applied for a loan modification, have you consulted with your area short sale specialist, have you consulted with your accountant, have you consulted with your tax advisor? Show the bank that you have made a proactive effort to overcome the cause of your hardship. Have you continued to seek employment?
Here is a sample:
To whom it may concern:
When I purchased my home in October of 2005, I had been employed at my job for 15 years. My salary more than covered my mortgage payment and after I was able to make an extra mortgage payment every year.
I was laid off on November 25, 2008 and have not been able to find another job of equal pay. After searching for several months, I was finally able to find a job, but now I am only making one-third of what I was making at my previous position. I have always had excellent credit but this reduction in income now makes it impossible for me to meet my monthly obligations.
This lower salary has proven to be a hardship for me. Now, my monthly salary does not cover my mortgage payment and my expenses. While I was unemployed, I used all of my savings to keep my mortgage current, and have exhausted all of my savings.
I am no longer able to keep my home and have spoken with my accountant and Realtor, and I feel that a short sale is the best solution. Please consider the offer that I have received on my home as full payment for my outstanding mortgage. I would like to maintain my good credit avoid foreclosure.
Your short sale hardship letter should also be signed. It doesn't have to be a novel, and you don't have to tell your whole life's story. But, what the bank is looking for is an accurate account of what led you to your current situation.