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How to Write a Hardship Letter

December 13, 2009

The easiest way for a homeowner to qualify for a short sale is if the applicant has at least one buyer who has made an offer on the house.

After a property owner has an offer, the first thing to do is send the mortgage-holder the short sale application which will include a hardship letter. A hardship letter describes why the loan went into default, why the owner had to put the house up for sale and asks the lender to accept a short sale.

The hardship letter should not be cut-and-dry, and rather it should be an emotional letter describing each and every hardship the borrower encountered and what other calamities resulted. The hardship letter should appeal to the lender to have sympathy for the borrower.

At the same time, if you describe hardships, such as major debilitating car accident, then it is a good idea to make sure you are capable of backing this up with a police report about the accident and information from the insurance company about the claim.

If a letter describes a hospital stay and expenses racked up by that stay, it should be accompanied by a doctor’s statement and copies of the bills.

After a homeowner has assembled detailed budget information about why they have been unable to make mortgage payments and how bad the picture is, the homeowner should write a hardship letter describing why the seller is requesting a short sale.

Information provided by a real estate agent can be used to organize the information a homeowner should include in a hardship letter.

This letter should describe involuntary reasons why the loan went into default.

It should describe in graphic terms how the homeowner got financial difficulties, was there a major tragedy or other obvious cause?

Was the main income provider laid off or lose a job?

Are payments on the mortgage up-to-date, or in arrears, and how many payments have been missed?

The hardship letter should illustrate why the homeowner is unable to meet the terms of the mortgage and make an appeal for the lender to accept a short sale.

This letter should be kept relatively short, four or five paragraphs. The homeowner should describe what solution is suggested to bring the loan current and why you think these efforts will succeed.

Examples of Financial Hardships include; Unemployment, Business Failure, Reduction in Income, Job Relocation, Decling Market, Overextension of Credit, Rate Increase, Two House Payments, Divorce, Medical Emergency / Sudden Illness, Bankruptcy or Predatory Lending. 

If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;  Bexley  Columbus  Delaware  Downtown  Dublin  Gahanna  Grandview Heights  Granville  Grove City  Groveport  Hilliard  Lewis Center  New Albany  Pickerington  Polaris  Powell   Upper Arlington  Westerville  Worthington

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