Hardship Letter For Short Sale

Hardship letter for short sale if written properly can be more than money saver. Here is how. Please understand one very important fact – foreclosure is very time, effort and money consuming process for your lender. Even more, if your lender have large amount of foreclosures listed on his books, this can even affect his future loan insurance rates. In other words your lender will almost always prefer short sale to undergoing a foreclosure process. All you need to do is offer one and it is rather easy.

Hardship letter for short sale property must contain following things:

1. Full list of your assets and proof of your income (well, proof of your inability to pay – bank statements, credit card bills, W-2′s and so on) – both these list must be completely honest and full as well as show that you really cant pay for the property and have nothing to sell. In case you have slightly stretched your asset list when applying for property loan, you are in some trouble and my best advice to you is to try and make amends and ask forgiveness for this to your lender, be humble and polite, interested in finding a solution for this situation – keep in mind, foreclosure is not in your interests or in the best interest of your lender too! Ask for forgiveness, explain situation as it were, it can save the day. If confused – look for professional advice from foreclosure and short sale lawyers – there are plenty in your area!

2. Make your letter humble – explain why you ended up in this situation, keep it honest – loss of job, medical condition, other important factors of your life that directly affected your income decrease.

3. Current property evaluation form from a licensed real estate agent must also be included. If you have a potential buyers for property in question, this is even better and shows that you are seriously considering and trying to find a mutually beneficial solution for both interested parties – your lender and you.

4. Have patience and, if you can, find and affordable short sale lawyer! Short sale process is still very tedious and time consuming process and you will only benefit from a professional advice!

Still, tread this path as a last resort after you have exhausted all other options – government refinancing grants for home owners, refinance plans and so on.

If there is no other way but a short sale or foreclosure of your property or even bankruptcy, go the short sale path. In this case, you may come out of situation without financial debt to your property lender or even bad credit rating and have a good clean start!

On a last note, look for professional advice from a foreclosure lawyer as this can save you a lot in a long run and keep in mind that you have to send your hardship letter for short sale directly to the decision maker – find out who it is, it may not be your lender or person who are you communicating with.