How to write a good short sale hardship letter

When writing a hard ship letter for a short sale there are 8 keys you must know about.

1. Make it less than 1 page.

In this case less is more. Take the space you need to clearly explain your hardship and that is it. If it is more than 1 page it wont matter much what you write because no one will ever read it! I frequently get questions from loss mitigators that are answered in a 3 page hardship letter that they didn’t take the time to read because they were too long.

2. Get straight to the point.

Tell them exactly what your hardship is, IE How your circumstances have changed since the time you signed your loan papers. Only include the facts, use bullet points if you have to.  An example is; “When I receive the loan on my house I was employed with ABC company and made $4,000 a month. 2 years later on Jan 1, 2009 I was fired and I am now unemployed.”

3. Be very specific

Explain exactly what it is that is keeping you from making your payments. Not things in general about the economy. They want to know exactly how you have been effected.

4. Explain what you have done to try and mitigate the problem.

Example;1 ” I have worked full time interviewing for 6 months and have not found a job”

Example 2; ” I have borrowed from Credit Cards and family and done everything I could to keep making payments. We even cancelled our cable TV and home telephone”.

Example 3; “I tried everything to avoid having to sell the home in this down market. I called Countrywide 57 times for a loan modification or forbearance plan and did not receive a single returned phone call. I feel I have no other choice but to sell the house.”

5. Explain if your situation is temporary or permanent and that you are unable to pay.

If it is true, explain that you do not see your situation improving anytime soon and that you have spent depleted all your savings and assets trying to keep up with the payments. “I now have Zero assets from witch to keep paying.”

6. Ask for the lenders Help.

Ask the lender to please accept the current market value of the house as payment in full.

7. You don’t want to have to file Bankruptcy.

You may mention that you are trying to avoid bankruptcy.

8. Handwritten.

Hand write it if you can, if not make sure you at least sign the bottom.

If you cant read your writing, make sure you type it and sign it.

Tip: If you have had specfic Job or Family related issues these are viewed more favoribly by the lender.