| Most lenders require homeowners applying for a | | | | sell your home helps make a more compelling case to |
| short sale to write a hardship letter. A hardship | | | | your lender that your financial hardship is real and |
| letter is a written explanation describing why a | | | | that you are not just trying to walk away from your |
| borrower is not able to make his or her mortgage | | | | financial obligation. |
| payments. The thought of writing a hardship letter | | | | 4. Don't blame the bank for your financial trouble in |
| sometimes causes fear and anxiety in homeowners, | | | | your hardship letter. Scapegoating the people that |
| but it's really quite simple and if written properly, a | | | | you are trying to convince to reduce your mortgage |
| good hardship letter can help a homeowner make a | | | | does not work to your advantage, so don't do it! |
| powerful case to their lender. Certain elements | | | | 5. Make sure your hardship letter makes logical sense. |
| written into your hardship letter can help make your | | | | More specifically, make certain your hardship letter |
| case to the bank while others can hurt your chances | | | | does not contradict any of the other personal |
| of getting a short sale approval. Here are 7 tips to | | | | documents your bank is examining as part of your |
| writing a persuasive hardship letter: | | | | short sale application (i.e. your bank statements, |
| 1. Write it yourself. This is your story, only you can | | | | personal financial worksheet, pay stubs, tax returns). |
| tell it convincingly, so make sure you write it. | | | | 6. Tell your lender that you want to avoid |
| 2. Explain the events and personal circumstances that | | | | bankruptcy. If the bank believes that you intend to |
| contributed to your inability to make your mortgage | | | | file bankruptcy, it will be less likely to seriously |
| payments. Examples include: tenant problems, a | | | | consider your short sale application. |
| medical condition or illness, job loss, job relocation, | | | | 7. Tell the bank what you want them to do. Although |
| death in the family, divorce etc. Also, describe any | | | | your ultimate goal in pursuing a short sale may seem |
| additional circumstances currently making your | | | | obvious to you, it may not be to your bank. In |
| financial situation difficult. | | | | your hardship letter, don't forget to ask your lender |
| 3. Describe all attempts previously made to sell your | | | | to accept your buyer's sales contract, approve your |
| home either by you personally or through a real | | | | short sale application and forgive any deficiency that |
| estate agent. Be sure to include all previous price | | | | may arise as a result of the short sale. |
| adjustments. The fact that you've already tried to | | | | |
