If you are facing a potential foreclosure and are thinking about a short sale to stop the foreclosure proceedings, you are not alone. A short sale is a common and often effective way to avoid a foreclosure, but before you can move forward with this plan, you may first draft an effective letter to your bank or financial institution stating your case. In most cases, the short sale hardship letter will be reviewed by a financial loss mitigator who will look at your case from a financial perspective. However, this will be a human with feelings and who may be swayed by an emotional appeal as well. With this in mind, you should be aware of what it takes to write short sale hardship letters that work.

Understand the Motivations of the Financial Institution
In order to draft short sale hardship letters that work, you must appeal to the bank from a financial perspective. The bank will not agree to a short sale if they believe that a loss is not inevitable. Instead, they will want you to move forward with a plan that puts more money in their pocket overall. The short sale is most likely to be accepted if there is a financial hardship impacting the borrower, if the mortgage is already in default and if the market value of the property has decreased. Hardships may relate to everything from the loss of a family member to serving in the military overseas or an unexpected decline in income.

State Your Case Factually While Appealing to Emotion
When preparing short sale hardship letters that work, you must explain the facts carefully and factually. These facts should be written in a clear, concise format with financial information related to property value, loss and more easy to follow and understand. While the financial facts should be clearly stated, keep in mind that the best letters are those that appeal to the reader from an emotional perspective as well. Defining the hardship and adding emotional details is great, but you should avoid whining. There is a fine line between appealing to someone’s emotional side and annoying them with whining.

Banks do not have to approve a short sale request, and the letter that you prepare may be one of the keys to a positive result for your request. If you want to draft a short sale hardship letter that has the best chance of giving you the results you desire, consider following these tips.

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