How to write a hardship letter when doing either a short sale or loan modification how to write a short sale or loan modification hardship letter how to write a short sale hardship letter. A short sale hardship letter is typically part of the short sale process, and this is the formal request that the homeowner makes to obtain the lender's approval while most lenders do want to see a short sale request letter, some may have a specific form that the homeowner may need to fill out. A hardship letter is a written statement explaining the mortgage is in default and is required by all mortgage companies in order to qualify for any type of loss mitigation. A hardship letter is a letter you write to your bank requesting they consider a short sale to prevent the foreclosure of your home after assembling hundreds of short sale packages, we have found that more than any other document, the hardship letter can make or break a short sale. Sample short sale hardship letters sample #1 this letter is a request for your cooperation in a short sale of our home located at _____ my husband has been laid off from his job because of a work injury.
Sample hardship letter mortgage, bank foreclosure, short sale the sample hardship letter below can be used as a guide don’t forget to insert your own details inside the parenthesis or where appropriate delete any information that is not relevant to your case always date your letters and always keep a copy of the letter you send for your records. How to write a short sale hardship letter by stevie duffin updated on 7/28/2017 when seeking approval for a short sale, borrowers must persuade the lender to accept less than the full amount of the mortgage loan. Click here for more valuable insider tips on how to stop foreclosure, foreclosure options, foreclosure process, short sale, short sale vs foreclosure help, where to go for foreclosure help, how to.
Writing a hardship letter home short sale guide writing a hardship letter writing a hardship letter how to write a heartfelt short sale hardship letter one of the most important items your lender will require during the short sale process is a letter of hardship simply put, a letter of hardship is an explanation as to what has. Hardship letter the hardship letter is perhaps the most vital document within the short sale package we shall be submitting to your lender(s) in most cases your lender(s) will be taking a loss once the short sale is completed the hardship. If you are pursuing a loan modification, deed in lieu, or a short sale you will likely need to write a hardship letter a hardship letter is a letter written to the lender and usually is sent along with other financial documents that outline the hardship and why the lender should approve your request. Download pdf date: to whom it may concern: i am now facing foreclosure after being unable to make the payments on my home i have been unable to keep up with these monthly payments as a result of _____ (hardship ie disability, job loss, illness etc. Ask that a short sale package be sent, including authorization allowing your real estate agent to act on your behalf and full instructions on the hardship letter you must write address the letter to the proper name of your asset manager, and limit its length to one page.
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 the letter should explain the circumstances why the borrower is in financial difficulties and clearly show their current financial situation. 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. Short sales: how to write a hardship letter walnut creek short sale hardship letters: more and more recently i’ve seen the banks paying much more attention to the content of a hardship letter there were times during the last few years i wasn’t sure they read them at all, and in fact, it seemed the bank reps would just “check a box.
When applying for a short sale, your lender might ask you to write a hardship letter or fill out a hardship affidavit read on to learn what a hardship letter is, what the contents should be, and how important the hardship letter (or affidavit) is to the short sale process. The hardship letter for the short sale package does not need to be a novel, or even a short story it is a short letter that explains what has happened to the borrower or what has changed since the borrower purchased the property. When applying for a loan modification, short sale, or deed in lieu of foreclosure (collectively referred to as forms of “loss mitigation”), one of the requirements in some cases will be for you to write a hardship letter.
A hardship letter also proposes a solution, whether that is reduced payments for a period of time, refinancing to a lower interest rate (especially in variable rate mortgages) or a short sale (where the bank agrees to take whatever the home can sell for and maybe agree to forgive the remainder of the loan. With so many people looking to short sell their property, if the lender believes your situation can turn around, they will look to approve a short sale for someone whose hardship letter presents a financial condition that will not improve. Sample short sale hardship letters lender name lender address lender's fax number today's date re: hardship letter - short sale for _____ address loan number: (#) to whom it may concern: we have purchased our family’s home in (date) since then, as you know, our country has experienced one the biggest housing market crashes in history. Knowing how to write a hardship letter for a short sale can be tricky because the bank will not simply accept a letter saying you cannot afford to pay the mortgage you will need to explain and reason with the bank.
Why am i writing a hardship letter you might be asking a mortgage lender to give you a loan modification, or to approve a short sale of your home whatever your ultimate goal is, keep it in mind as you compose the letter everything you write should support this goal 7 tips to writing a good hardship letter keep these tips in mind as. 228 hardship letter templates you can download and print for free we have tips on writing hardship letters as well as example letters, including hardship letter templates for mortagage, medical bills, immigration, and other personal and professional situations. In order to have your short sale agreement accepted by your lender you will need to submit a short sale hardship letter the short sale hardship letter will actually be part of a package which will contain all of the information as to why your short sale should be accepted and the details of that agreement. Hardship letters – tips on writing them separate hardship letter(s) for additional lien holders – this letter should be very similar to the first mortgage hardship letter however, in addition to everything in the first letter a qualified short sale must be justified with cause a few examples of justifiable cause are.