Writing a Short Sale Hardship Letter

By
Real Estate Agent with Realty ONE Group

No matter which lender is holding the note to your home, you are going to need to write a hardship letter if you want to sell your home via a short sale. It’s an important task but it shouldn’t be daunting, even if most of us don’t write much more than e-mails and Facebook updates.

What is a hardship letter? Essentially, it’s nothing more than an explanation of why you need to short sell your home – a loss of a job, divorce, medical issues, job relocation, for example. (Quick note: being underwater on a home and just not wanting to pay any more isn’t going to get very far.)

Ideally, the situation is one that is documented in the off-chance the lender wants to check the reason. For example, lenders also want your last two bank statements. So if you write a hardship letter explaining you’ve lost your job and there’s still direct deposit payroll checks hitting your account every two weeks, there’s likely going to be a problem.

For those stumped as to what to say, there are examples of hardship letters available – not to be used verbatim for very obvious reasons.

The good news is the lender will look at the financials more than the hardship letter; simply be honest in your letter and it will suffice just fine.

If you have more questions about short selling your home in Glendale, Peoria or elsewhere in the Phoenix area, click the contact tab to e-mail me or call me today.

Image: anankkml / FreeDigitalPhotos.net

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Want to read more that Jonathan and Tobey have to say about Phoenix real estate and the industry in general? Check out his outside All Phoenix Real Estate.com blog or his Facebook Fan Page!

Comments (1)

Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

And they also don't want to read a novel. Summarize as best you can and keep it to less than a page.

Aug 02, 2011 06:15 AM