There's been a huge increase in Southern Maryland Short Sales over the last year thanks to the ongoing housing crisis. More often than not, they end up as foreclosures, many times because the path to negotiating is at best, murky. When working with a lender to get a short sale agreement, there are several things that they are going to ask for, including tax returns, financial statements, investment records, etc. They're also going to ask for a hardship letter.
So what is a "Hardship Letter", exactly?
It's essentially a personal letter to the bank explaining why you can't possibly afford to pay the mortgage anymore. The thing to remember about the hardship letter is this: The sadder, the better! This is really where you want to work closely with your Realtor to brainstorm on all the reasons why you can't pay the mortgage. Sick mother? Kids with serious medical bills? Devastating car accident? Job lost due to faltering economy? This is your time to say so!! Whatever you do, don't lie about it, but make sure you are maximizing the hardship you are experiencing. The banks are willing to work with people, but excuses such as admitting you falsified loan docs to get the house aren't exactly going to make the bank jump for joy.
It DOES make a difference!
The banks can only work with the information they are given, and the more hardship they can establish, the better off your chances of getting the short sale approved are. Questions about how to survive a short sale or get your hardship letter written? Send me an email to jonbenya@mac.com and I'll be more than happy to help!
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