Good Tips on Hardship Letters
One of the most overlooked functions of a short sale is the importance of a good Hardship Letter. A good Hardship Letter is the basis for which the lender will consider the property for a short sale and to determine whether or not the homeowner may be in a situation now, or in the near future, to make good on the loan. Here are a few items you should consider when preparing a short sale hardship letter:
1. Be brief and to the point. 2 - 3 paragraphs at the most.
2. Do not be too vague or too analytical
3. Identify the reason for falling behind. What changed in your life that brought you to this point?
4. How do you intend to resolve the situation? ie: loan modification, short sale, capitalization, etc.
5. Tell the lender you are willing to cooperate in getting all required docs to them in a timely manner.
6. Be sure to thank them and leave your contact information as well as your Real Estate Agent and Processor contact information.
Good examples of hardship:
A. Medical complications preventing employment
B. Reduction in salary
C. Loss of employment
D. Fixed income
E. Single parent no longer receiving child support
Bad examples to use in a hardship letter:
A. Overextended
B. You were, or are now, a student
C. Divorce - Unless financially insolvent
D. Legal Issues
E. Threatening to file bankruptcy
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