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How Important is the Hardship Letter? The Short Sale Hardhip Letter Sets The Stage

Short Sweet And To The Point- The Hardship Letter Summarizes and Explains

Short, Sweet And To The Point- The Hardship Letter Summarizes and Explains The Sellers Situation

As a Short Sale Agent in the Sacramento Area; I get this question all the time:The Hardship Letter- How important is it?

Sacramento Certified Short Sale Specialist Forth Hoyt answers  questions about short sale hardship letters and provides Example Hardship Letters.

Some of the most frequently asked questions I get have to do with the Short sale Hardship Letter: “How do I write the best hardship letter?”, ” How much detail should I put in the hardship letter”? or  “What is a Hardship Letter?”

The simplest and quickest answer is that the hardship letter explains what caused the financial hardship and is like a cover letter to your short sale package.

A Great Short Sale Package is the most important aspect of a great short sale transaction. Once your Short Sale Specialist Agent has determined whether or not your situation fits a short sale and that the banks will likely approve your hardship, he goes to work on compiling a KILLER SHORT SALE FILE. What Documents Are Required For A Short Sale? The “Killer” Short Sale File

One of the most important aspects of a great short sale package is a Great Hardship Letter, one that quickly and clearly explains the seller’s situation, the reason for the default or impending default and ties all the other documents together and brings all the elements of the package together.

Short, Sweet and to the point, is essential- the a great hardship letter is never more than three or four paragraphs, always fitting on one page, a letter that is brief and organized will surely be read by everyone who looks at you file at the servicer and investor.As a Sacramento Area Short Sale Expert and Certified Short Sale Negotiator I am constantly getting questions about  Short Sales from Sacramento  area sellers Considering a Short Sale.

I am including a couple of hardship letter examples that you might get an idea of the type of letter you need to write.

Hardship Letter Example 1

RE: Hardship Letter –

Short Sale for _____________________ address
To whom it may concern:
I purchased my home at _____________ in ___________.  At that time I was employed by
_______and business was extremely good. My salary and the probability of a promotion and raises
made me sure that I could easily support my mortgage. Unfortunately,  my company had to reduce its workforce and I was laid off.

After being unemployed for seven months searching for a comparable job,  I finally got a temporary position as an office assistant and I am continuing to seek other work. I struggled for several months to make my mortgage payment, depleting my savings and running up credit card debt. I was also hit with some medical payments that I did not expect.

I really love my house, but I know that I cannot afford it. I am a single parent, working as a temporary employee with few benefits and no savings. My financial situation cannot sustain a home mortgage of nearly $2800 per month. I want to sell the home, avoid foreclosure and salvage my credit. I know that a foreclosure on my record will affect me for years to come. Would ask that you please assist me in avoiding this. My attorney says I am a perfect candidate for bankruptcy, but I prefer to avoid further destruction of my credit. I respectfully request that this short sale be approved, otherwise, I will have no choice but to file bankruptcy for my own protection. I just want to move on and start over.

I deeply appreciate your help and understanding in this matter. If you have any questions, or need anything further from me, please contact my Realtor, Forth Hoyt at 916-316-38110 or forthhoyt@kw.com.

Home Owner Name
Address and
Contact Information


Hardship Letter Example 2

(Company’s Name)
(Company’s Address)
RE: Hardship Letter for Short Sale on(home address)
Loan number: (#)
We purchased our family’s home in (date). In the last three months our family’s economic situation has deteriorated and become a crisis (explain what caused the financial hardship. Ex: job lay-off, death in the family, medical emergency,…) and we can no longer afford the new payments. As you know, The entire country has experienced one the biggest housing market crashes in history. This, combined with the rising food and gas prices and current slow down in the economy, has affected our ability to pay our bills on time.
Our adjustable interest rate mortgage payment has increased from ($) to ($) since we first purchased the house making it especially hard to keep it current. In the last couple of years our home has lost about (55%) of its value making it impossible to refinance it since the equity we once had is now gone.

At this point we are trying to avoid foreclosure and/or bankruptcy and would like to discuss with you the possibility of getting a short sale approval that could be beneficial for both parties.

We truly appreciate any effort you can make to help our family through this situation. Please feel free to contact our Realtor, Forth Hoyt at 916-316-38110 or forthhoyt@kw.com with any questions.

(Home Owner Name)
(Co-signer Name)
(Home Owner Address)
(Account #)

Questions about your particular situation? Contact us today at Forth Hoyt’s Sacramento Short Sale Center or call 916-316-3810

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