Short Sales – Hardship Letter Tips
I have been negotiating short sales for over 16 years and reviewed hundreds of hardship letters during that time, I am still unable to pinpoint what exactly makes a great hardship letter.But read below for a few tips to follow when writing your short sale hardship letter to your lender:
Don’t use a form letter or download one from the Internet
The short sale loss mitigation department reads hundreds of hardship letters each and every day.No need to be a great writer, but you should be able to tell the lender, in your own words, why you are requesting a short sale. Your lender does not care about your grammar but they may give it more attention if your letter is handwritten. The loss mitigation representative has one objective and that is to determine whether you qualify for a short sale.
Explain your hardship
Instead of focusing on the effects of your hardship, an effective letter should state the actual hardship event, such as divorce or loss of job, and move on to the next paragraph. Your goal is to tell them the reason why you are no longer making your mortgage payments, not to get them to feel bad for you.
Don’t blame the poor economy or collapse of the real estate market
If the real estate market didn’t collapse, the person reading your letter wouldn’t have a job. There are other ways to tell the bank representative that your property is no longer worth what it once may have been. Instead of blaming the poor economy, it may be more effective to highlight the fact that the property is on the market at the current market value and being marketed by a local short sale specialist.
Don’t write a novel
Some of the most effective hardship letters are no more than a few sentences long. Keep in mind, the person reading your letter most likely has hundreds of other files similar to yours. The sooner you can present the reader with your hardship reason, the more likely they are to approve your hardship request. In fact, some of the most effective letters are actually those which bullet-point the hardship reasons and keep is simple..