In order to have your short sale agreement accepted by your lender you will need to submit a short sale hardship letter. The short sale hardship letter will actually be part of a package which will contain all of the information as to why your short sale should be accepted and the details of that agreement. Here you will learn what you should include in your short sale package.
Firstly you want to have a cover letter. This will detail the basic outlines of your short sale agreement. It will state that you are no longer able to meet the financial obligations of your home loan and what you have been offered for the property. This should be kept brief and will introduce the lender to the details of the short sale deal.
After this you will want to include an outline of your current financial situation. You will need to include pay stubs and your tax returns for the previous two years. You should also include a statement of your current financial position. This is where you list all of your assets such as money in the bank, real estate, stocks, and vehicles on one side and liabilities such as credit card debt, mortgages and any other loans on the other side. Remember what the lender is looking for is whether you are able to continue to meet your obligations. Even if your income is sufficient to meet your mortgage payments if you have other debts that you need to service you may still be eligible for a short sale. You might also want to include a copy of your current credit report as this is one situation where having a bad credit record can work to your advantage.
Secondly if you have been on unemployment you should include proof of this with your application. This will help your short sale agreement to be accepted as it demonstrates that you are unable to meet your loan payments. If you have any medical problems, particularly if you have incurred debts as a result, you should include this as well. Medical related financial costs are one of the best ways to have your short sale approved. Lenders are disinclined to foreclose on people who are unable to meet their loan payments as a result medical problems.
Finally you should include a copy of your hardship letter. This will be addressed from you to the bank and written in your own words. Start the letter with the words “This is a hardship letter” as this will make the purpose of the letter clear. Next detail your situation and why you have gotten into financial trouble. If for example you have lost your job you would state this now. Include any and all problems that relate directly to your inability to service the loan. This will be supported by the information that you will supply in the package. State the amount of your loan repayments and that you feel that you are unable to make those payments. If you are considering filing for bankruptcy you will want to include that information now. Next state the name of the parties that you wish to sell the property to and the price that has been offered. Clearly state that it you fully accept this offer and that you believe it is the only way out of the financial problems that you are in. Finally state that you will provide any documentation that the lender needs and that you are willing to fully cooperate with the short sales process. Sign the letter and submit it with the rest of the package.
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