Short Sale - Sample hardship letter

Rosemary, what do you do when an owner abandoned the home and left the tenant inside for the past two years. The tennant continued to lived for free and did all the repairs and posted a lien on the home for the cost of repairs. Now, he does not wants to move but wanted to buy the home. So he hired my office to help him get the home. How do I go about it. How do I get a short sale payoff (SPO) for this home. I have all of the owners pertinent information, but I do not know where they are.

Thank you for the sample letter to share with my cliant!

Hi
In 2005  I purchased a property in California as primary residence. I have a first loan for 340K and 2nd for 90K as a HELOC with the same lender. The loans were "puchase money" loans. After living in the house about 1 year I bough other property in California and I rented out the first one. After a few months that I had a tenant, I cannot find a tenant for the property  now . The area is hard hit by the falling home prices ad it is very hard to rent it out. (Stockton-California)
I contacted the lender- Country Wide and there advise was to do a short sale. The current market value is about 180 K.
My question is: Is the lender going to come after me for the difference?Am I going to have a 1099 send to IRS? Are these loans considered non-recourse loans?

Maybe somebody can help me with an answer.

Thank you very much,

Dewey Mann

hello:

I want to share my personal story with anyone who is interested. I was a loan office in the retail housing market. about 6 months ago I was searching for a new job, any job just to somehow bring in enough money to meet my monthly bills.

I had been a few months behind on my mortgage and did receive a few letters from the lender.

I TRIED TO DO A SHORT SALE BUT THERE ARE SO MANY OTHER HOMES ON THE SHORT SALE MARKET THAT MY HOUSE JUST SAT AND I RAN OUT OF TIME"

two weeks ago I had a good friend visiting from Washington state. we were about to go on a hike and there was a knock on my door. I thought it was just some solicitor. I was going to get mad at the person because I have a sign on my front door "no solicitors".when I asked him what he wanted he said that the bank had sent him out to "change the locks on the doors". I was frozen with fear and felt sick to my stomach. I immediately tried to call the lender and after hours of endless waiting I was told that my house was scheduled to be sold in two weeks. The only possibility to save my home was to send them a cashiers check for $40,000. I was in a panic and my neighbor told me about a law firm that helped him. I did not even know that he was in trouble just like me.

I called this law firm and within two days they stopped the foreclosure and dropped my payment in half. the best thing is that to start the program I only had to come up with a certified check for around $900.00 which I sent to the bank.

The law firm was even able to work with me on their fees and allowed me to make a down payment to them. These guys were the best. they saved my life. I highly recommend that anyone in my situation give them a call. The guy that I dealt with was Daniel Cordova and his phone number is 818 419-2327. I hope that this helps anyone facing the same situation as I did.

thanks steve

Dewey Mann,

My name is Mike.  I was in the same situation as you .  I called a gentleman that my co-worker referred me to (Javier 818-792-7704).  This is what he sent me when I asked him the same question: "When funds are borrowed to buy a home it is considered a "purchase-money" loan.  That makes it a non-recourse loan under California Law.  If the borrower owes $300K on a home that's now worth $200K, the most the lender can do is take over the home.  The Lender cannot sue the borrower for the difference".  This guy was great.  He answered all my questions and really worked his tail off to ensure tthat we didn't get screwed!  He was able to help after a company took our money, promised to help and didn't do anything for us.  My family is grateful to him.

Thank you Rosemary and other friends for sharing your situations and comments. I just comprised a "short sale" letter to my mortgage company. Everyone has a "story" so I won't bore you with mine. I just wanted to let everyone know that it certainly helps to know we are not alone.

Hello Rosemary,

My husband and I are in the process of a short sale for our house which we live in: California.  We are also trying to short sale our condo which has been rented out for the past 2 years.   The offer to our house is less $368,000 from what we owe on both the 1st & 2nd loans with Bank of America.  While the offer to our condo is $208,000 less than what we owe for the condo.  I was told there are now loan forgiveness for owner occupied homes when short selling but for the condo will we be held responsible for that also? I feel like there is no way out & would like to claim bankruptcy since it seems liek we will not be able to get out of this financial mess that we have gotten into.  Any information is greatly appreciated.

thanks

My business partner and I bought a one-family house together two years ago to change it to a two- family house. But he stopped paying his part of the mortage a few months after the closing because of his financial situation. The auction sale is 10 days away. We found a buyer, and the bank agrees to have a short sale.

I don't know if the reason (above) for hardship letter is valid. please advice.

Thanks

The sample Hardship letters in this site are very good. There are very good posts in this site.

Hi do you tell your the family on a short sale about the 1099-C. That the loss could be considered income.

Wow! a very relevant and informative article i read this day as of the moment! :)

You can also visit http://hardshiplettersample.com/ for more hardship letter sample and the ultimate guide on making one.