I have been an absentee AR contributor for the past month. My excuses are pretty good though, for example, our local market is picking up somewhat (more pending files to review, working with agents on transactions and solving problems), several new experienced agents have joined our Company (more managing activities) and I have the task of putting together a Homeowners Workshop which I will be hosting in a few weeks (a lot of detail work).
The FREE Workshop's goal is to provide Straight Answers for Homeowners. There will a panel of three professionals: an attorney, an accountant and mortgage representative. I will be the moderator. Subjects will include: What is a Short Sale?, What is Pre-foreclosure, What is loan modification? and so on.
Which brings me to the topic of discussion for this post.
Most of us are aware that Lenders are asking for hardship letters when considering a Loan Modification or Short Sale. Below is a list of "Hardships" I believe the banks will consider when making a decision on a clients loan.
Hardship letters should be kept short, simple and to the point. They are not asking for the letter as a reason to feel sorry for you. They simply want to know what lead to your current situation.
The banks are currently being inundated with letters and phone calls. I think the best way to get their attention is to be thorough when filling out the paperwork and include a "Straightforward" Hardship Letter; stick to the facts and cooperate anywhere you can. A call once every day or two is helpful. Never assume that they have everything...Double Check!
Here is an sample list of hardships that lenders may consider during the loan workout process:
- Adjustable Rate Mortgage Reset- Payment Coca(uncommon, but we will see more lenders accept this in the future)
- Loss of Job
- Reduced Income
- Failed Business
- Job Relocation
- Death of Spouse or C0-Borrower
- Marital Separation
- Military Duty
- Reduced Income
- Medical Bills
- Damage to Property (natural disaster or unnatural)
So my AR friends, do you have anything to add, comment or suggest.