SHORT SALE HARDSHIP LETTER

 Just because the value of your property has dropped below what you owe does not mean you will have the ability to do a SHORT SALE. Lenders require there to be a genuine hardship before they will consider releasing the mortgage for less than what is owed. 

Perhaps you lost a job you had been working at for the last 20 years, transferred to another state, facing divorce, serious illness or other loss of income. These are all perfect reasons to list in your hardship letter. A great hardship letter will bring tears to the reader's eyes. I'm not joking; this is where you want to really spell out all the details of the trouble your family is facing. Don't hold back on the reasons you can no longer afford the payments.

 A great letter will flow something like this:

• An apology for not being able to continue to pay your loan, be sincere. Don't blast the lender for charging you too high a rate afterall you did accept this loan.
• How you were previously able to pay ie. Both my wife and I were working and healthy. (Do not say I stopped making payments because the lousy home you sold me droppeed 50% in value)
• Reasons why you can no longer repay ie, wife lost job, medical bills, pay cut
• What you have done to try to continue to pay: exhausted savings, cash advanced credit cards, gotten part time work, borrowed from family.
• If bankruptcy is being considered drop the B word (Ahem, that's B for bankruptcy), it gets their attention (DO NOT call them the B word)
• Ask for a file to be opened and tell them you will list the property as a short sale.
• Thank them for their understanding and assistance.

DO NOT lie. Simply spell out, politely and sincerely the reasons you need assistance. My Nan used to say you catch more flies with sugar and I agree. This is the place to be sweet, remorseful and sincere. And, of course call me if you need further guidance.

© Article written by Kelly Willey, Broker, Coco Plum Realtors, 2009