How Do I Write a Short Sale Hardship Letter?

In order to qualify for a short sale you first have to be able to prove some sort of hardship. Hardship can come in a lot of different forms. It can be job loss, medical, excessive debt, divorce, or job relocation. There are a lot of things that would qualify somebody to put them in the category of hardship to attempt a short sale. If you fall into or somebody falls into a category like that, then you need to prepare a hardship letter that essentially describes what the hardship is.

So, if you’re going through a divorce and you’re being forced to sell the property because of a divorce decree that should be in your hardship. Perhaps both parties were qualified for that hardship initially, but now one party is forced to move out.
They have to find their own place to rent and now the other party can’t support the mortgage payment by themselves, so divorce has created a hardship. That has to be in the letter and be explained in detail to the bank so they understand what the hardship is. You can go online and Google hardship letters or short sales and you’ll find good examples of hardship letters out there.

How can I prevent a short sale?

If somebody has decided to do a short sale I don’t see any reason why they would want to prevent a short sale. What they probably want to do is prevent a foreclosure through a short sale. If you decided you didn’t want to do a short sale the option would be to do a loan modification. So, if you wanted to keep the house then you would see whether or not you could actually modify your loan in order to reduce the payments. If you qualify for it the banks will add those additional payments that you missed possibly to the back of the loan, reduce your interest rates, or in rare cases they do a principal reduction, which are things that I have heard about, but have really never seen.

If somebody wanted to figure out a different option besides a short sale it would be a modification. Most modifications we find don’t work, but some do, so you want to attempt that first. If a modification doesn’t work and you’re still behind on your mortgage payment the next best option would be to do a short sale in order to prevent the foreclosure.

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