Writing a hardship letter for short sale purposes is not an easy thing – but here’s a few vital points to include to make it a little easier. If you do find yourself in the position where you are considering a short sale, then you will know how you got there, the ins and outs and the highs and lows – this is basically what your hardship letter will contain. It needs to be a summary of the problem, explained to the lender in simple terms – but not too simply either.
A good way of getting the balance right is by considering your situation in a few simple ways: the why, how, and solution. This will not be a pleasant task, but it is very important to do this right. Remember that by providing an honest and complete account of your situation on your hardship letter for short sale, you are increasing the chances of your lender agreeing to your proposal.
Three key points for a hardship letter for short sale
The why part should start with telling the lender how you cam to be in this situation to start with. Is it because of death, disability, employment or divorce perhaps? These are common issues which lead to people finding themselves in the position where they need a short sale to get themselves out of a tight spot. Include dates of significant events if possible to give the lender a good picture of the timeline of the issues.
Next comes the how part of your story – and possibly the most important. This is the bridging section in which you have the opportunity to tell the lender how you reacted to the problems, and how despite all that you still found yourself in the position where you need a short sale to fix the situation. What the lender wants to see here is how you have been proactive, and taken action by doing things like selling assets, having yard sales, taking on extra work for example.
The last part of the hardship letter covers the solution as you see it. This will cover things that have not happened yet – and is your opportunity to put forward a proposal to your lender of what you would like to see happen. If the source of the problem is more permanent in nature, then a short sale will be a good option for both you and the lender. However if the issues are more temporary then the lender may wish to steer you more in the direction of a loan modification.
The hardship letter for short sales is your opportunity to be heard. Lay it all out there and tell your story in a clear manner. If you keep the above elements in mind you will be able to write your own hardship letter for a short sale without too many difficulties or further stresses.
If you feel I’ve missed anything here or have your own tale to tell, let me know!