Getting Started with your Short Sale

The worst thing you can do is nothing at all

How to write a Hardship Letter

What constitutes a "financial hardship"?

• Loss of employment or reduction in income
• Death in family or major unexpected medical expenses
• Relocation or Job Transfer
• Increased bills or expenses
• Major repairs needed to property, without resources to pay for them
• Divorce

By the time a home owner is considering a short sale, most have already done a "band aid" loan modification, either a forbearance or repayment plan, which is a temporary solution to a long term problem.  If you have already written a hardship letter for a loan modification, you will need to write a new one that is more specific to a short sale.

Here are some common things that a short sale hardship letter should and should not contain:

1. The hardship letter should be signed and dated
2. Reference the property address and loan number in the header
3. It should be short and to the point, 5-10 sentences in enough
4. State your hardship, and the circumstances that led you no longer being able to afford the property
5. Make a strong case and relay the desperation of your case
6. Do not blame your lender for your circumstances
7. Do not write to much, they don't have the time to read it
8. End the letter with something like "a short sale seems to be our only solution to avoid foreclosure" or "please consider a short sale on our property, we can find no other answer to our circumstances"
9. Again, don't forget to sign and date it!

CLICK HERE to see a sample short sale hardship letter

While you may be stressed from the financial situation in your life, know that this is only a temporary season in your life.  All things come to pass.  While the short sale process is anything but "short", you can recover your credit and be ready to purchase a home again in as little as 18 months.

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