Hardship Letter for Shortsale Template

Hardship Letter for Shortsale Template

What Is a Hardship Letter for a Short Sale?

A Hardship Letter for a Short Sale is a typed or handwritten statement prepared by the borrower and sent to the lender to explain the circumstances that led to the payment delay and convince the lender of the necessity to sell the property at a lower price.

Alternate Name:

  • Short Sale Hardship Letter.

You may need to dispose of your residential estate for less than the sum of money that remains on the mortgage. If you find a third party that is willing to buy your apartment or house, the proceeds from the sale will go to the lender - typically, a financial institution that financed the mortgage in the first place. This bank may forgive the difference or require the original borrower to pay the difference between the price of the short sale and the initial value of the mortgage. You can download a Hardship Letter for Short Sale template through the link below.


How to Write a Hardship Letter for a Short Sale?

Follow these steps to compose a Short Sale Hardship Letter:

  1. Write down your full name and contact details. Identify your loan by its number and date.
  2. Describe your financial circumstances and prove they are not going to improve in the nearest future . You need to justify the sale of your residential property and show how your difficult financial standing does not let you fulfill your mortgage obligations. Show your wish to live up to the terms and conditions of the mortgage and ask the lender to see your perspective. Prove your point by attaching relevant documentation - bank statements, tax returns, medical bills.
  3. Indicate your plan to sell the real estate and confirm the lender they will receive all the proceeds from the potential transaction.
  4. Remember the tone of your letter must remain professional - do not include overly emotional or defamatory statements when explaining your lack of means. You can refer to circumstances beyond your control - for instance, the current global health crisis led to the termination of your employment, and despite your best efforts, you can no longer comply with the terms of the original mortgage.
  5. Add your contact details, thank the recipient of the document for their time and attention, and sign the letter.

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