Mortgage short sale hardship letter examples. Hardship Letter Sample 2022-10-15

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A mortgage short sale hardship letter is a document that is written by a homeowner who is facing financial hardship and is unable to make their mortgage payments. The letter is typically sent to the lender or mortgage servicer as part of a request to sell the property for less than the amount owed on the mortgage, known as a short sale.

In the letter, the homeowner explains the circumstances that have led to their financial hardship and outlines their inability to continue making mortgage payments. The letter should include details about the homeowner's income, expenses, and any assets or debts. It should also provide an explanation of the efforts the homeowner has made to sell the property or find other solutions to the financial hardship.

There are several reasons why a homeowner might need to request a short sale, including job loss, medical bills, divorce, or other unexpected expenses. Regardless of the specific reason, a hardship letter should be written with honesty and empathy, as the lender or mortgage servicer will be more likely to consider the request if they understand the genuine financial difficulties the homeowner is facing.

Here are a few examples of mortgage short sale hardship letters:

Example 1:

Dear [Lender or Mortgage Servicer],

I am writing to request a short sale of my property at [address] due to financial hardship. I have been struggling to make my mortgage payments for the past several months due to [reason for hardship, such as job loss or medical bills]. Despite my best efforts to sell the property or find other solutions, I have been unable to do so and am unable to continue making mortgage payments.

I am currently [income and expenses, such as "working part-time and earning $X per month, with monthly expenses of $Y"], and I have [assets and debts, such as "savings of $Z and credit card debt of $A"]. I have attached supporting documentation to this letter, including my current income and expense statement and a copy of my credit report.

I understand that a short sale is not the ideal solution for either of us, but I am at a loss for how to resolve this situation. I hope that by providing this information, you will be able to understand my financial hardship and consider my request for a short sale. I am willing to work with you to find a mutually beneficial resolution.

Thank you for your time and consideration.

Sincerely, [Your name]

Example 2:

Dear [Lender or Mortgage Servicer],

I am writing to request a short sale of my property at [address] due to financial hardship. My husband and I have been struggling to make our mortgage payments for the past year due to [reason for hardship, such as divorce or unexpected expenses]. We have tried to sell the property, but due to the current market conditions and the amount we owe on the mortgage, we have been unable to find a buyer.

We have exhausted all other options and are unable to continue making mortgage payments. We understand the impact this may have on your company, and we are willing to do whatever we can to mitigate the damage. We have attached a financial statement outlining our current income and expenses, as well as a list of any assets or debts we have.

We hope that by providing this information, you will be able to understand our financial hardship and consider our request for a short sale. We are willing to work with you to find a mutually beneficial resolution.

Thank you for your time and consideration.

Sincerely, [Your name]

Example 3:

Dear [Lender or Mortgage Servicer],

I am writing to request a short sale of my property at [address] due to financial hardship. I have been

How do you write a hardship letter for a short sale?

mortgage short sale hardship letter examples

PLEASE USE YOUR OWN WORDS. How do you prove extreme hardship? Who can apply for hardship fund? Please consider accepting this short sale as payment of my mortgage, in lieu of processing a foreclosure or allowing my financial status decline to the point that I must file bankruptcy. Thankfully, my situation has improved and I am able to get back to regular payments. We cannot guarantee that you will achieve the results you desire. In the body of the letter, state the hardship that led you to fall behind on your mortgage payments.

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Short Sale or Loan Modification Hardship Letter

mortgage short sale hardship letter examples

Since {date}, however, I have been struggling to make the payments because of {details of why you have fallen behind on payments; be specific}. There are a few things that should not be included in a mortgage hardship letter. Other possible reasons for awkward requests There are many reasons, in addition to unemployment, divorce, and serious illness, that can lead a homeowner to apply for a loan modification. I hope that you will agree and approve this short sale quickly. State The Reason For The Hardship The reason for the hardship should be stated matter-of-factly.

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EXAMPLES OF HARDSHIP LETTER FOR MORTGAGE LOAN MODIFICATION

mortgage short sale hardship letter examples

}, leaving an amount that will not satisfy my mortgage payment. WE DO NOT ACCEPT PAYMENTS FROM CONSUMERS FOR SERVICES. Explain your hardship s : First, make sure your hardship qualifies as a financial hardship. She currently has two possible job offers, and will know the results next month. The Making Home Affordable program was launched specifically to help people facing foreclosure and to revitalize the real estate industry. I am ready to cooperate with any instructions you may have. How do you start a hardship letter? Please review these letters before submitting your hardship letter to Cogburn Law Offices.

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Hardship Letter Sample

mortgage short sale hardship letter examples

Sample Jennifer Coolridge 123 Neighborhood Way Los Angeles, CA 90021 Nov. When you click on the link of the letter example you want to lose, the template will automatically download. What kind of hardships are there? This letter explains to your lender why you cannot make your mortgage payments, are trying to find a buyer for your home and avoid foreclosure. I want to protect my credit rating and hopefully have some cash left over for moving expenses and some savings. If I can short sell my house, I can avoid foreclosure.

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Short Sale Hardship Letter

mortgage short sale hardship letter examples

I had no other assets from which to make the mortgage payment. This is the short sale hardship letter sample. In your hardship letter, you need to prove that you face genuine hardships that have affected your ability to pay. Serious hardships include lack of access to regular, preventive medical care; lack of accessible and quality child care; lack of affordable and stable housing; and worries about food. I have fallen behind in payments for the last three months because my wife, Tammy Chicago, lost her job, which reduced our total income by half. You may find like many that the banker is willing to work with you to maintain your home. Andrew Chicago 2300 Walnut Street Philadelphia, PA, 19050 April 10, 2022 Nancy Wilson Loan Officer ABC Lending Institution 5457 Hayward Lane Philadelphia, PA, 19051 RE: Mortgage Hardship Dear Ms.

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Free Short Sale Hardship Letter Samples

mortgage short sale hardship letter examples

I am at the end of my rope as I continue to sustain the wellbeing of my family and manage our growing debt while trying to recover from my own injury that doctors say will take several years to fully recover from. These are usually used by homeowners who cannot make their mortgage payments and provide a way to seek leniency from mortgage lenders. If you are unable to make credit or mortgage payments, or if you are unable to cover a particular debt, then a hardship letter is a convenient way for requesting leniency. The process of Have Questions or Need a Mortgage Loan? Financial hardship is typically a loss of income or major expenses that were unexpected or beyond your control. I appreciate your help and understanding in this matter very much.

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Sample Hardship Letter

mortgage short sale hardship letter examples

In order to qualify for a loan modification or short sale, you must submit a hardship letter to the lender. I hope we can meet soon to agree on the terms of a loan modification. I would appreciate it if we could work together to find a way to normalize my mortgage payments. I have always prided myself in paying on time and I have taken steps to put away money in my savings account to guard against other unforeseen occurrences like this. I am willing to follow whatever directions you may have.

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Writing an Effective Hardship Letter

mortgage short sale hardship letter examples

For example, in the case of Brennan v McKay 1996 ,a taxi driver accumulated 12 points and argued that if he were to lose his licence he may lose his job and suffer financial difficulty. Keep your explanation brief. How do you write a hardship letter for a short sale? I also believe that a short sale is in your best interest, because the house is in good condition and you could sell it for market value rather than waiting for foreclosure and trying to sell a vacant house. I am hoping you will accept this offer so that we can both avoid the hassle and cost of a foreclosure. I can escape foreclosure if I can short sale my house. Lenders prefer handwritten letters and are more apt to agree to a short sale for homeowners who may have lost jobs or encountered significant medical bills, as opposed to those who engaged in careless spending.

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