Example of Short-Sale Hardship LetterI wrote this post on short-sale hardship letters, but I thought it might be useful to have an example of a hardship letter here. This letter is fictional, but it demonstrates the no-nonsense, numbers oriented approach that is likely to assist anyone looking to do a short-sale.
|A well-written letter can speed|
the painful short-sale process with the bank.
To Whom It May Concern:
Please be advised that I am seeking to sell my home, but its current value will not allow me to pay off the loan in full. I am seeking to sell as I have lost substantial income in my last job change.
$4000 - Wages
Mortgage, Taxes, Insurance: $1800
Heat, monthly: $300
Credit Card Debt: $400
Total Expenses: $5200
At this time, my monthly expenses, without emergencies or other home improvements or maintenance problems, far exceeds my household income. I no longer have savings to assist with the short fall, and don't anticipate a significant increase in income in the near to medium term.
An attorney can advise you on additional aspects of your situation that might be relevant to explain to the bank, including account balances, and other expenses that may affect your ability to pay the mortgage.
Remember, a short sale hardship letter is a math problem for the bank. If there's not enough money to go around, and foreclosure is inevitable, they have a much greater incentive to do a short-sale, and recoup what they can.
Things Not to Say in Your Short-Sale Hardship LetterThis is just a partial list, but:
- Don't Make Threats. Things like if "you don't approve this short-sale I'm going to trash the house" or "you'll have to drag me out if you foreclose kicking and screaming" aren't likely to help you out of your situation. Although it may feel very frustrating, and desperate, to be in a situation where you need to be out, making things emotionally difficult for the people who are handling your petition is not going to make it easier. Most people respond to threats by being defensive, and less helpful, then they would otherwise be, and that's no different here. Although it often feels as if there's no one to talk to at the banks who has anything but a tin-ear for your troubles, there are people there with real feelings. Making the situation easier for them is likely to result in a better outcome for you.
Also remember, that I am not an attorney - and this is not legal advice. Your situation may be different, and should be addressed at an individual level.
Do Good Things Today!
*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.