Your Hardship Letter to your Lender is critical in setting the scenario for your Short Sale approval. It’s not difficult and as your Short Sale List Agent, I am happy to help you with it. This Letter is NOT to be seen or shared with anyone other than your Lender and myself. Buyers and Buyers Agents are NOT privy to any of your personal or financial information.
The Hardship Letter is one page, three paragraphs..no longer.
Intro: To Whom It May Concern:
First Paragraph: This paragraph tells your Lender why you need to Short Sale your home. You want to stress where you were when you bought the home, and what you had hoped. Example: “I purchased my home with the hope of retiring here.” “I purchased my first home because it was my dream home and I hoped to live here for a very long time.”
Second paragraph: Tell your Lender here what you have done to try to keep your home. Did you attempt a loan mod? Did you look for more work when your hours were cut back? How have you tried to hold onto your home?
Third paragraph: Where are you now? Financially and emotionally. State your hardship here. Tell them why you cannot continue to pay your mortgage.
Example: “I have retired and am now living on Social Security.” “My work hours have been cut.” “I am separating from my husband”, “My mother died..”
Last sentence: I have tried everything I can to keep my home, but I am not able to make my payments any longer. Please consider my request for a Short Sale or I will be forced to let my home go to Foreclosure, which I never intended to do.
Thank you for your consideration-
Your name and date.
Be honest, truthful and tell your story in your own words. The Negotiators are human and in my almost 5 years of working and closing Short Sales, I have found that they are more open to different types and degrees of hardship. A Short Sale is better for them than a Foreclosure.
I am not an Attorney. Please consult your CPA, Attorney or Financial Advisor for any potential tax consequences.
