| A short sale hardship letter is perhaps the most | | | | caused us to lose over $2500 in income each |
| important letter any homeowner will ever write. | | | | month. |
| The letter of hardship allows borrowers to | | | | In December 2007, the company I worked for |
| present the circumstances that caused them to | | | | went out of business. Not only did we lose my |
| become delinquent on their mortgage note. | | | | income, we also lost our health insurance. We |
| When writing a short sale hardship letter, it is | | | | were unable to find an insurance provider who |
| important to remember the letter will be read by | | | | would pay for my wife's treatments because |
| a human being. Banks employ loss mitigators to | | | | they were considered pre-existing. |
| work as mediators between borrowers and | | | | Although we were able to obtain some financial |
| lenders. Although loss mitigators do not make the | | | | assistance through the hospital, we had depleted |
| decision to approve or disapprove a short sale | | | | our savings account by June 2008. My wife has |
| request, they do have considerable input. | | | | recently been able to reopen the daycare, but at |
| The words and emotions expressed within the | | | | this time she is only able to care for three |
| hardship letter can sway the loss mitigator to help | | | | children. Currently, she brings in $900 per month. |
| borrowers obtain short sale approval. This is not | | | | My unemployment benefits run out in June of this |
| to say homeowners should fabricate misfortunes. | | | | year. I have yet to find fulltime employment, but |
| In fact, people who lie in order to obtain short | | | | work odd jobs when I am able to find them. Our |
| sale authorization could be charged with a criminal | | | | combined monthly income is around $1700. |
| offense. | | | | Considering our house payment is $1450 per |
| It's always a good idea to draft an outline of the | | | | month, I believe you can see why we are unable |
| letter of hardship. Most people find they need to | | | | to cure our arrearages and become current. |
| write this letter several times before obtaining | | | | We sold my wife's car and my motorcycle so we |
| their final version. Start by creating a timeline of | | | | could continue paying for medical treatments. We |
| the events which led to your inability to pay the | | | | have enrolled in budget billing through our utility |
| mortgage. Then, write out a detailed description | | | | company and eliminated extra features on our |
| of these events and how they affected you. | | | | phone and cable. We shop at discount grocery |
| Keep in mind that banks don't like losing money. | | | | stores and utilize coupons whenever possible. We |
| Many people believe a short sale means they can | | | | do not go out for dinner, go to movies, or engage |
| sell their home for any price they want and | | | | in frivolous spending habits. However, we simply |
| write-off the remainder of their mortgage balance. | | | | do not earn enough to make ends meet. |
| Most banks only allow borrowers to list their real | | | | Obtaining short sale approval would eliminate a |
| estate at around 10-percent under market value | | | | tremendous amount of stress and allow my wife |
| and require the sale be facilitated through a | | | | to focus on improving her health. We greatly |
| licensed realtor. | | | | appreciate the opportunity to participate in a short |
| The following is a sample short sale hardship | | | | sale and thank you for taking time to review our |
| letter. While each lender requires their own | | | | situation. |
| format, this will give you an idea of what banks | | | | Sincerely, |
| are looking for. | | | | John and Jane Doe |
| Dear Lender, | | | | If you are delinquent on your mortgage and feel |
| We are contacting you today to request short | | | | a short sale would benefit you, you must contact |
| sale approval for our property located at 1212 | | | | your lender to discuss this option. Not all banks |
| Sunny Lane. Unfortunately, we have fallen on hard | | | | engage in short sales; nor are they required by |
| times and are no longer able to meet our | | | | law to authorize this type of real transaction. |
| mortgage obligation. | | | | Therefore, it is crucial to be respectful and not |
| We purchased our home in March 2006. At the | | | | lose your temper when talking to the loss |
| time, I was employed as a construction | | | | mitigator handling your case. |
| supervisor and my wife operated a licensed | | | | Once a short sale is authorized, you must work |
| daycare center from our home. In April 2007, I | | | | closely with your lender and provide requested |
| was involved in a car accident and had to undergo | | | | documents in a timely fashion. Even more |
| multiple surgeries. I was unable to return to work | | | | important, you must learn how to write a |
| on a full-time basis for over a year. | | | | hardship letter that is compelling, factual and |
| In August 2007, my wife was diagnosed with | | | | concise. Doing so can greatly increase your |
| breast cancer. Due to her treatments and | | | | chances of success and potentially free you from |
| hospitalization, she had to close the daycare. This | | | | your mortgage loan debt. |