Writing the Hardship Letter

The hardship letter is a very important piece of the short sale package submitted to the lender. While it will not make sole decision for the lender, because only numbers really matter in the end, it will help convince the lender that there is no question as to whether this should qualify as a short sale. Here are a couple hints to use when preparing the letter:

Be Honest:
Chances are that you really are having a financial hardship and it is more than likely very emotional for you and your family. The letter should convey that emotion and tell the story about how you got in the situation which prompted the short sale.

Stick to the Facts:
Try not to include details that are not pertinent to the decision. Working on the bank-side for so many years in the loss mitigation department I can tell you the one line on a hardship letter that we all could not stand went something like this..."Due to the unforeseen economic situation and loss of value in my home...". The bank knows about the economy and the bank knows that half of its portfolio has lost equity value so just leave it out. Stick to the situation that caused you to not be able to afford your monthly obligations. If there are medical issues mention those as well (you do not need to be too specific but enough to convey the message).

Closing Statement:
Finally, close the letter by restating the situation that caused the financial hardship and emphasize the stress it is causing on the family. In addition, ask for help with and consideration of the short sale. It never hurts to ask for what you want in the end.

If you are having a financial hardship and would like to work with a Certified Distressed Property Expert please contact us immediately. If the bank is paying for it why wouldn't you choose the best?

J.D.A.