Short sale hardship letter template. Sample Hardship Letter for Short Sale 2023-01-01

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A short sale hardship letter is a document that explains to a lender the reasons why a borrower is unable to make their mortgage payments and is requesting a short sale of their property. A short sale is a sale of a property for less than the amount owed on the mortgage. It is often used as an alternative to foreclosure, which is when a lender takes possession of a property because the borrower has defaulted on their mortgage.

There are several reasons why a borrower may need to request a short sale, such as a loss of income, a divorce, a death in the family, or an unexpected medical expense. Whatever the reason, it is important for the borrower to clearly and concisely explain their situation in the hardship letter.

A short sale hardship letter template can be a useful tool for borrowers who are not sure how to structure their letter. It can provide a general outline and some suggested language, but it is important for the borrower to personalize the letter and make it their own.

Here is a sample short sale hardship letter template:

Dear [Lender],

I am writing to request a short sale of my property located at [address]. I am unable to continue making my mortgage payments due to [reason for hardship].

I have tried to find a solution to my financial difficulties, but unfortunately, I have been unable to do so. I have explored options such as refinancing, selling the property, and seeking assistance from family and friends, but none of these options have been successful.

I am now facing the difficult decision of either letting the property go into foreclosure or attempting a short sale. I believe that a short sale is the best option for both myself and the lender. It will allow me to avoid the negative consequences of a foreclosure, such as damage to my credit score and legal fees, and it will allow the lender to recoup some of the money owed on the mortgage.

I understand that a short sale will have an impact on my credit score and may affect my ability to obtain future financing. However, I am willing to accept this consequence in order to resolve my current financial difficulties and avoid a more damaging outcome such as a foreclosure.

I have attached supporting documentation, including financial statements and hardship documentation, to this letter. I hope that this information will help you to understand my situation and consider my request for a short sale.

Thank you for your time and consideration. I look forward to working with you to find a solution that is mutually beneficial.

Sincerely, [Your Name]

It is important to note that a hardship letter is just one part of the short sale process. Borrowers will also need to provide documentation such as financial statements, proof of hardship, and a list of comparable properties to support their request. Additionally, the lender will need to review and approve the short sale before it can proceed.

In summary, a short sale hardship letter is a crucial part of the short sale process. It allows borrowers to explain their financial difficulties and request a short sale as an alternative to foreclosure. A template can provide a helpful outline, but it is important for borrowers to personalize the letter and provide supporting documentation to increase the chances of a successful short sale.

[Sample] Short Sale Hardship Letter

short sale hardship letter template

We really appreciate your fair offer on our house Gary. Details About the Sale While appealing to the emotional side of the reader with factual details about the circumstances surrounding the hardship is important, the lender ultimately will look at the short sale request from a financial perspective. This is not something that I take lightly, but I do feel that at this point, this is my only option. Hardship Letter In order to move forward with a short sale, the homeowner typically must write a short sale hardship letter and submit it to a lender. Stephen was having problems with tenants and was ready to sell his rental property.

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Short Sale & Loan Modification Template Hardship Letters

short sale hardship letter template

If I can short sell my house, I can avoid foreclosure. Often, the borrower is attempting to move forward with a short sale as a means to avoid foreclosure. In addition, point out that a short sale will prevent a foreclosure. Considering the house is in excellent condition and could easily be sold for market value,. What Is A Hardship Letter For Short Sales?.

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Short Sale Hardship Letter [Free Samples]

short sale hardship letter template

An Remember that lenders are in the business of making money, and they normally understand that doing a short sale is preferable to foreclosing on a home. I am at the end of my rope as I continue to sustain the wellbeing of my family and manage our growing debt while trying to recover from my own injury that doctors say will take several years to fully recover from. Prove your point by attaching relevant documentation - bank statements, tax returns, medical bills. Please find attached my bank statements, tax returns, medical documents, and affidavit. The specific details regarding the hardship that has resulted in financial challenges should be listed, and a focus should be made on the point that the circumstances were beyond the control of the homeowner. Ideally, the entire letter will be a page in length or less.

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How To Write A Short Sale Hardship Letter (With Template)

short sale hardship letter template

Under these circumstances, I feel that I have no other option than to request approval of a short sale on my property. Thank you for considering my request. Medical-Related Hardship Letter Examples Job-Related Hardship Letter Examples Divorce-Related Hardship Letter Examples Other Hardship Letter Examples. Then, the letter should quickly transition into the reason why this request is being made. However, the foreclosure process can frequently be a lengthy one; one which can take Subsequently, most lenders will be happy to work with you to find an alternate payment solution. I am ready to cooperate with any instructions you may have. The lender will need to determine how much money they will lose by agreeing to the short sale, and this will need to be considered in relation to what a foreclosure may cost the lender.


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Sample Hardship Letter for Short Sale

short sale hardship letter template

Please review these letters before submitting your hardship letter to Cogburn Law Offices. A short sale is a type of real estate transaction that occurs when the seller owes more money to his or her mortgage company than what the property is selling for. Should the short sale of my house be approved, I can subsequently avoid foreclosure proceedings. If you have any questions or need further documentation, I can be reached at 555 555-5555 or john smith. Show your wish to live up to the terms and conditions of the mortgage and ask the lender to see your perspective.

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Writing a Hardship Letter for Short Sale [Free Samples]

short sale hardship letter template

I found another employment, but the pay is only a third of what I was making before. Haven't found the template you're looking for? In addition, the letter should be dated. The goal of the letter is to show that there are no other options available to the homeowner. Generally, the reason for the hardship should be significant and should clearly explain why the homeowner may continue to struggle financially. In addition, you may find it worthwhile to include: copies of both your most recent mortgage payment as well as a recent mortgage bill to help justify your claim. In order to qualify for a loan modification or short sale, you must submit a hardship letter to the lender. Hundreds of thousands of Utah residents face the same dilemma every year.

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Hardship Letter Sample

short sale hardship letter template

I am willing to follow whatever directions you may have. Opening the Letter After the homeowner has gathered all of the details related to the hardship, he or she can begin drafting the letter. You may need to dispose of your residential estate for less than the sum of money that remains on the mortgage. There is specific information that must be included and below are several tips when writing your letter. If you find a third party that is willing to buy your apartment or house, the proceeds from the sale will go to the lender - typically, a financial institution that financed the mortgage in the first place. Unfortunately, not all of them can qualify you.

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Short Sale Hardship Letter

short sale hardship letter template

Use our sample short sale hardship letters as a starting point for your own hardship letter. What they want is documentation and persuasion. For example, the homeowner should not mention that other assets are available that could be used to pay down the outstanding balance on the mortgage or that the homeowner could borrow money from a family member. Keep in mind that a lender will have foreclosure expenses, make-ready expenses and sales expenses if the foreclosure takes place. Is it a job loss, an illness, a divorce, or something else that is keeping you from making the payments? Also be respectful in your short sale hardship letter and it will go a long way in convincing them to approve your short sale.

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Free Short Sale Hardship Letter Samples

short sale hardship letter template

Why Should I Sell My House In A Short Sale? I also believe that a short sale is in your best interest, because the house is in good condition and you could sell it for market value rather than waiting for foreclosure and trying to sell a vacant house. I have maxed out two credit cards trying to put food on the table for my children and spouse, who is unable to work due to a medical condition. A homeowner may also point out other efforts that are being made or that have been made to avoid foreclosure but that the short sale is the only solution that remains to avoid foreclosure at this point. It can be downright humiliating. I also believe that a short sale is in your best interests because the house is in good shape and you could sell it for market value rather than waiting for foreclosure and trying to sell a vacant home. A short sale occurs when a property is sold for less than the amount of the balance owed on a mortgage with all proceeds of the sale going directly to a lender. A homeowner may include dates and dollar amounts in this letter to provide the lender with concrete details about the circumstances.

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Hardship Letter for Shortsale Template Download Printable PDF

short sale hardship letter template

Thank you for considering my request. I can escape foreclosure if I can short sale my house. And you may find that locating the right buyer can be more trouble than you initially expected. I would like to fulfill my financial obligations, but it has not been possible for the past six months, and a short sale seems to be the only solution. I appreciate your time in considering my request. Identify your loan by its number and date. I can be reached at Phone Number or Email Address.


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