When you try to go short with a bank, you will need to write a financial hardship letter to convince the bank or loan company to accept and allow you to short sell your home. If this is done incorrectly, the lender may reject your short sale request. It is important that you get it right on the first try, as the lender will find your situation more credible. Here are some things to keep in mind when writing a hardship letter.
Make sure you identify yourself clearly at the beginning of the letter. Your full name, address, mortgage company, and your loan number should be clearly identified as the first part of your letter. Lenders need to be able to identify and present your letter quickly and this will help them stay on top of you and your hardship letter.
Keep the letter short and to the point. Your first paragraph should state exactly why you are writing a hardship letter and what you would like to request from your lender. NEVER blame your lender and do not criticize or badmouth him in the letter. This will disable them and will likely cause your application to be rejected very quickly. Just tell them what you are requesting and why.
Include a BRIEF explanation and account of how your financial hardship came to be. There are many viable reasons for financial difficulties. Some of these include, medical complications that would prevent you from keeping your job, a drastic decrease in salary or job loss, a steady income, or being a single parent with no child support. Some bad and non-viable reasons for financial hardship include, legal trouble, a divorce, if you are a student, if it has been extended too long, or if you are threatening to file for bankruptcy. You should also indicate whether you think your hardship is temporary or likely permanent.
Be as detailed as possible. Include dates, names, copies of bank statements, and other documents that physically prove where you are. The bank will not “just take your word for it.” Give them physical evidence that they just can’t deny.
Also leave all of your current contact information in your letter. Phone numbers, addresses, emails and any alternate contacts in case they are not available. Make sure the lender can easily reach you.
Be courteous and appreciative in your letter. Close by thanking the lender and declaring that all statements are true and correct to the best of your knowledge and belief. Add your signature to the end of your letter. If you have a co-borrower, ask them to sign it as well.
Here are some guidelines on how to write a financial hardship letter. If you still need more help, you can find various templates online with a simple Google search. Hopefully this will help you avoid foreclosure and successfully complete a short sale.
