Short Sale Sample Letter - What does the bank want NEED to hear?
One of the most important ingredients to a successful short sale is the right verbiage in the Hardship Letter. This single piece of paper carries significant weight with the Loss Mitigators of any bank. Although it does not prove the necessity of the short sale, it outlines the sellers state of mind and the reasons why a short sale is the best option. The key points that you will need to articulate are:
- What your hardship is
- Why you need to move or can no longer pay the mortgage
- That this is the last resort
Below is a copy of a sample letter that we use from the Certified Distressed Property Institute. Remember, this is simply a guideline and should be tailored to your personal situation. It should be written by the homeowner, but your agent can assist in making sure the key points are mentioned. You need to sell the bank the idea that a short sale is in their best interest.
Date:
Lender:
Attn: Loss Mitigation
RE: Hardship Letter - (Property Address) Account Number
To Whom It May Concern:
I purchased my home in 2004 and we had the income at the time to support the mortgage.In early 2006, my mother was diagnosed with Alzheimer's Disease and needed to be put in a nursing home which was very expensive. She later passed away in November 2006 and my husband lost his job and has since taken a significance cut in pay. We love our home and do not want to lose it but we have come to terms with the fact that we cannot afford to keep it.
This left me with the financial burden of paying the mortgage. I make $35,000 annually and Ihave exhausted all of my savings, IRAs and my children's college funds in which I used to keepthe mortgage payments current until May 2007.
In May 2007, 1 was no longer able to make payments and inquired about partial payments, payment plans, and refinance; I was denied on all accounts. In July 2007, I put the house up for sale with ( Your Agent's Name and Brokerage Firm) who specializes in pre-foreclosure properties and short sales.
My financial situation cannot sustain a home mortgage of nearly $2800 per month. I want tosell the home, avoid foreclosure and salvage my credit. I know that a foreclosure on my recordwill affect me for years to come, I would ask that you please assist me in avoiding this.
Since the house has been on the market this is the only offer that we have received. Please accept this offer as payment in full. My Realtor will continue to market the house and if we receive any other offer they will be forwarded to you immediately.
I deeply appreciate your help and understanding in this matter. If you have any questions, orneed anything further from me, please contact my agent or me personally.
Whatever references you make toward your financial situation must be supported by your financial documents that you will be required to provide. Make the letter personal - it has to have your voice and passion in it. Keep it short and sweet and make the points relevant.
If you need help at all, reach out to an agent in your area that works short sales. They are different transactions and not all agents can or want to handle them.
Jimmy Mulhern
http://www.HowToAvoidForeclosureInVirginia.com
Comments(0)