How to Write a Short Sale Hardship Letter
Once you have made the decision to sell your home for less than owed on your mortgage the next step you need to take is writing a Short Sale Hardship Letter to your bank. The letter will offer make or break your ability to get your home sold without damaging your credit to the extent that a foreclosure would.
The letter should start out by requesting the banks cooperation in the short sale of your home located at …….. Next truthfully state why you are in eminent failure of continuing to make your mortgage payments and why. Job loss, health issues, divorce and increased loan payments due to interest rate escalations are some factors that come to mind. Let your bank know what your monthly expenses are and that you will soon be or are already are under water in debt and will no longer be able to make your mortgage payments. You should also provide copies of your financial statements (include documents that offer proof of financial hardship: Copies of any unpaid bills and/or late notices you have received in the last six months. Including: credit cards, car payments,…Past two months of Proof of Income. Including: past two months paycheck/paystubs, social security,… Last quarter’s profit and loss statement if self-employed, past two years of federal income tax returns, past two years W-2′s, and last two months of bank account statements.) Do not make the mistake of complaining to the bank about your situation. Only state the facts of how you got here and what are you going to do to get out of this situation. Keep your letter as brief (1 to 2 pages max). A lender does not want to read a book of your financial ruin and will often gloss through it if to lengthy.
Next explain that you have chosen a real estate agent (give his/her name & phone number), and you have authorized your agent to speak with the bank regarding the sale of your home. Tell the bank you truly appreciate their assistance and effort in helping your family through this situation. Sign off by letting the bank know you have provided true and correct information to the best of your knowledge.