How to write a heartfelt short sale hardship letter

One of the most important items your Lender will require during the short sale process is a letter of hardship. Simply put, a letter of hardship is an explanation as to what has transpired which has caused you to fall behind on your mortgage and an explanation of why you need to short sale your home.

This letter is significant as it will lay out the foundation for why you are no longer able to meet your financial obligations and it is vital in helping you stop foreclosure and/or achieve a short sale.

The Hardship Letter should be an honest, heartfelt statement outlining the circumstances that have created the problem. It should include these components:

1. A brief apology for having to ask the lender to take a loss
2. A description of the steps the homeowner has taken (used credit cards, borrowed from family, borrowed from retirement accounts) to stay current on the mortgage
3. A clear statement that the homeowner has extended all available options to stay current on the mortgage and that a Short Sale is the only remaining option, other than foreclosure.

While it is important for the home owner to provide a complete picture of their hardship, it is also important to avoid a letter that is excessively long. In order to get your Servicer to understand the hardship, the processor needs to read the letter and connect with the writer. Limit the letter to a manageable length.

If possible, attach to the Hardship Letter any documents, receipts or notices that support the homeowner’s hardship.

Below are examples of hardships that lenders take into consideration when analyzing short sale requests:

• Payment Shock (Adjustable Rate Mortgage Reset)
• Loss of Job
• Reduced Income
• Failed Business
• Job Relocation
• Divorce
• Death of Spouse or Co-Borrower
• Illness
• Incarceration
• Military Duty
• Medical Bills

As local Handle With Care Specialists, we provide answers to the many questions you may have on how to short sale your home. We often come across long hardship letters that touch on many points unrelated to the clients’ true situation on why they need to short sale their home.

All of our Handle With Care Specialists have been trained to help you write the most effective hardship letter possible. Contact us today for help in writing yours. Whatever you do, do not overlook the importance of writing a proper heartfelt short sale hardship letter.