How to Write Hardship Letters
Hardship letters will often make or break your plans of short selling your home or applying for loan modification.
Banks will normally take into consideration how you express your hardship thru the letter.
They will see if you really are personally affected with your present financial situation. So how do get an approval for your loan modification? By providing the proper hardship letter of course!
To start with your letter writing, here are some helpful tips:
First of all, think about your current hardship. Write down every possible idea that comes in mind on why you can no longer afford your house.
Examine the possible sources of your financial difficulties: medical bills, unexpected loss of job, credit card debt, increased property taxes, and everything you know has greatly affected your financial capability that resulted to your desire to just get rid of your property. Doing so can help you easily compose mortgage hardship letters.
After you have written down your hardships and its causes, pick the ones you know have greatly affected your current financial situation. Ask yourself what caused your failure to religiously pay your mortgage monthly amortizations.
Now that you are prepared to start writing hardship letters, keep in mind to keep your letter short, preferably just a single page and in paragraph form. Banks don’t have the time in the world to read novels just to find out why you’re having a difficult time making mortgage payments.
At the top line of hardship letters, the bank’s name should appear. Indicate there that you are asking for a short sale.
The second line, place the bank’s address, the phone or fax number on the third line, the current date on the fourth line, and the last line you may type: “RE: Request for Short Sale”. On the line, indicate also your loan number and your property address. Skip a single line before starting your letter. The salutation should indicate “Dear (Bank’s Name) Representative.
On the first paragraph of hardship letters, directly state the change. Write down the changes that occurred and the reasons why you’re having a difficult time making your payments. Be brief and direct to the point as much as possible.
Let the bank know about the major changes that happened from the time you purchased your home and your present status that somehow affected your budget to make on time payments.
Moreover, your financial hardship letters should also provide explanations in concrete details. Maybe your house is not strategically located that resulted to the decline of your property value, or you noticed there are many foreclosures on your street.
If you’re going to indicate that your income can no longer accommodate mortgage payments, make sure you have all the documents to prove it.
Finally, on the last paragraph of hardship letters, you should clearly indicate that you can no longer afford to pay for your property, thus you’re considering a short sale because you are left with no other possible option. Honestly state your intent: do you really want to keep your house or not?
Do not also forget to leave yours or your short sale agent’s contact details. Once completed, sign the letter along with a date and give it to your agent, lawyer, or directly to the bank.