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A hardship letter is a document that explains your financial difficulties and requests a solution, such as a short sale, to your mortgage lender. Here is a general outline of what to include in a hardship letter for a short sale:
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1. Introduction: state the purpose of the letter and provide your contact information.
2. Explanation of your hardship: describe the specific financial difficulties that have led to your inability to make mortgage payments. This could include a loss of income, medical expenses, or other unexpected events.
3. Details of your financial situation: provide information about your income, expenses, assets, and liabilities. This will help your lender understand the extent of your financial difficulties.
4. Request for a short sale: explain that you are unable to continue making mortgage payments and request that the lender agree to a short sale of your property.
5. Conclusion: express your willingness to work with the lender to find a solution, and thank them for their time and consideration.
Sample 1 - Hardship Letter for Short Sale
[Your Name]
[Your Address]
[City, State ZIP Code]
[Email Address]
[Phone Number]
[Date]
[Lender’s Name]
[Lender’s Address]
[City, State ZIP Code]
Dear [Lender’s Name],
I am writing to request your consideration of a short sale of my property located at [Property Address]. Due to [specific financial difficulties], I have been unable to make mortgage payments and have fallen behind on my loan.
[Explain your hardship in more detail, for example: I lost my job and have been unable to find employment. My medical expenses have also been very high and I am unable to keep up with my mortgage payments].
As of [date], I am [number] months behind on my mortgage payments. My current income is [current income] and my monthly expenses are [monthly expenses]. Despite my best efforts to manage my finances, I am unable to make my mortgage payments and I am unable to refinance my loan.
I am respectfully requesting that you consider a short sale of my property. I understand that this is not an ideal situation for anyone, but it is the only solution available to me at this time.
I am willing to work with you to find the best solution for all parties involved. I would be happy to provide any additional information or documentation that you may require.
Thank you for your time and consideration.
Sincerely,
[Your Name]
Sample 2 - Hardship Letter for Short Sale
[Your Name]
[Your Address]
[City, State ZIP Code]
[Email Address]
[Phone Number]
[Date]
[Lender’s Name]
[Lender’s Address]
[City, State ZIP Code]
Dear [Lender’s Name],
I am writing to request your assistance in a short sale of my property located at [Property Address]. Due to [specific financial difficulties], I am facing a hardship and am unable to continue making mortgage payments.
[Explain your hardship in more detail, for example: I was recently divorced and as a result, my income has decreased significantly. I am also responsible for paying child support and alimony, which has put a strain on my finances.]
As of [date], I am [number] months behind on my mortgage payments. My current income is [current income] and my monthly expenses are [monthly expenses]. Despite my best efforts to manage my finances and find a new source of income, I am unable to make my mortgage payments and I am unable to refinance my loan.
I understand that a short sale may not be the ideal solution for the lender, but it is the only option available to me at this time. I am willing to work with you to find a solution that is in the best interest of all parties involved. I would be happy to provide any additional information or documentation that you may require.
Thank you for your time and consideration.
Sincerely,
[Your Name]
Please note that you should always consult your lender before proceeding with a short sale and make sure that you are providing the required and accurate information.
Frequently Asked Questions (FAQs)
1. What is a Hardship Letter for Short Sale?
Answer: A Hardship Letter for Short Sale is a written explanation from a homeowner to their mortgage lender outlining the reasons why they are unable to continue making payments on their mortgage.
This letter is typically required as part of the short sale process and is used by the lender to determine whether or not to approve the short sale.
2. What are some common reasons for hardship in a Hardship Letter for Short Sale?
Answer: Common reasons for hardship in a Hardship Letter for Short Sale include: job loss, reduction in income, medical expenses, death of a spouse or family member, and divorce.
3. What should be included in a Hardship Letter for Short Sale?
Answer: A Hardship Letter for Short Sale should include the following information:
- A clear and concise explanation of the hardship and how it has affected the homeowner’s ability to make mortgage payments
- The homeowner’s current financial situation, including income, expenses, and assets
- A detailed explanation of the homeowner’s efforts to resolve the situation, such as trying to find a new job or reducing expenses
- Information about the short sale, including the sales price and the name of the real estate agent handling the sale
4. How long should a Hardship Letter for Short Sale be?
Answer: A Hardship Letter for Short Sale should be one to two pages in length and should be written in a clear and concise manner.
5. Can a Hardship Letter for Short Sale be written by a third party?
Answer: A Hardship Letter for Short Sale should be written by the homeowner, but in some cases, a third party, such as a financial advisor or attorney, may assist in drafting the letter. It is important to keep in mind that the letter should be written by the homeowner and should be in their own words.