Short Sales: The Hardship Letter
Here is a good post about doing a hardship letter for those that could use a little help. For Pensacola Short Sales Call Charles Stallions Real Estate Services 800-309-3414 or click here for more resourses.
In order to participate in a short sale, a borrower must have some sort of hardship. The bank actually requests a copy of a "hardship letter".
The hardship letter 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. Essentially, why can't the borrower afford the property any longer?
Use this list as a guideline to preparing your HANDWRITTEN hardship letter:
- Hardships. What are your hardships (current and past)? For example - unemployed, car accident, medical problems (personal or family), divorce, military deployment or move, etc. Go into some detail about each hardship. The following are the most important messages to get across to the Lender:
- You will not be able to be current again on your loan.
- What has changed about your situation since you originally qualified for the loan? (for example, Did the loan adjust? Did you lose your job?)
- You do not have enough income to make these payments.
- You are leaving the property
- Your Assets. Explain that you have no assets with which to continue paying.
- Bankruptcy. If you are considering bankruptcy, you may want to make mention of that in the hardship letter.
Remember . . . the goal of the short sale is not to relieve someone who is disgusted by the fact that s/he is now "upside down" on their mortgage. It is an option available to those individuals who cannot afford to make mortgage payments any longer.
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