What goes in the Hardship Letter?
This outline will help you prepare your hardship letter. The sample answers are to assist you NOT to just be copied. Your hardship letter should only contain facts. Just be honest. Your goal is to explain to your Lender why you can no longer make the payments for your property. This letter should be handwritten and legible.
TO: Countrywide Mortgage
FR: Paul and Suzie Helpus
RE: 1234 Lost Value Ave. Poinciana FL 34759
LN#: 34578903
First Paragraph-Explain what you want
- We are requesting that you approve us for a short sale of our loan with your Company.
- We are no longer able to make the payments and have been trying hard to sell the property.
- We love our home but due to circumstances beyond our control we are no longer able to pay for it.
Secondly, describe your hardship
- What led to your current financial problems and caused you to miss mortgage payments?
- What caused your hardship?
- Did you lose your job?
- Did your current job require a transfer?
- Illness?
- Death?
Be very specific. Remember you are trying to get your Lender to accept a loss. Be honest and be thorough.
Then describe what you have tried to do to overcome your hardship.
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Have you been to counseling?
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Have you been job hunting?
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Are you cutting back on your expenses?
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Have you been making mortgage payments on your credit cards?
Briefly outline your current situation.
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You have a new job but are making less money.
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You had to move due to divorce, job, children etc....
Provide your contact information.
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Let them know they are free to contact you if they have any questions BUT reiterate that they should contact your Broker.
Finally, sign and date the letter.
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All Borrowers must sign.
OK, that's it for this time. Next time we'll discuss.....I'm not sure yet :)
In the meantime, if you have a property that needs to be sold as a Short Sale just CLICK HERE. I'll send a Short Sale Listing Package right over.
FAQ #1 What is a Short Sale?
FAQ #2 What is a Hardship and why do I need one?
CENTRAL FLORIDA REAL ESTATE SHORT SALE INFORMATION
POINCIANA FLORIDA REAL ESTATE MARKET REPORTS
CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES
MAKE AN OFFER ON ANY OF MY FLORIDA PROPERTY LISTINGS HERE
MORE INFO FROM BROKER BRYANT... THE SOURCE FOR POINCIANA REAL ESTATE
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Hun...
This looks nothing like the Doc I typed for you. Somehow I just knew that would happen :)
You're welcome. Over :)
TLW...ROAR!
Fabulous. I hear too many agents say they "don't do short sales". We do them and do them very well. I do wish that some listing agents would learn the difference between a short sale and a pre-closure. Not everything with the comment "subject to third party approval" is a short sale.
Hi BB, Many people should find this post helpful. Consumers and agents!
BB- I love the be honest line. WOW do I wish my client had read your post before they showed me their hardship letter that was filled with lies. I had to fold my hands and completely walk away from the table. I released their listing and wished them luck.
This is a great outline for a hardship letter Bryant. Thank you for putting this up. Divorce, and Jobs seems to be the biggest reasons here, are you seeing the same in FL?
BB Good information for clients as well as agents and not just in Florida.
Good FAQ - next time I am trying to describe what one is I will print out an example and give them a copy of this blog!
I'm going to print this. I've been trying desperately to avoid the Short Sales and REO listings, and so far I've done well in this quest. I've done a few, only because the sellers were friends. But I just got one referred to me from an agent in south Florida who doesn't speak English very well. I've spoken with her on several occasions in the past; helping her with other needs for buyers and sellers in this area. So in this case, my sense of obligation to help this agent is overriding my disdain for short sale listings >=I
Very thorough info. One thing I always try to get them to mention something about contemplating bankruptcy but would rather just sell. The bankruptcy tends to get the lenders more motivated.
Sad that these have to be written in the first place. Good that you outline it here to make it a bit easier.
BB - Thanks for this info. it is very helpful and I will refer back!
BB - thanks for posting this. hopefully it will find it's way into the hands of agents that need a little help. as always, you touch things that are very pertinent yet often overlooked.
This is such a great series, BB! Very helpful to anyone who wants to try their hand at short sales. Using your guidelines can make a transaction go much more smoothly.
Appreciate having your great information to refer to very much.
Good information. Now if only the lender will care enough to respond.
This is excellent information for the homeowners in your area.
BB - Excellent information for those needing a short sale. Have you found many letters not being sufficient and denied?
Jeff
BB - That's a great, simple, straight-forward outline. Hope lot's of folks looking to get their short sales approved find it here on Active Rain.
BB- I too like your new series and the way you have modified your Business to fit the times. Thanks.
To the point, Bryant. I tell sellers with letters groaning "you shouldn't have given me the loan, the market value dropped", to answer one simple question. What has changed since you obtained your loan that makes you unable to pay your mortgage and keep the property?