Writing a Short Sale Hardship letter poses an interesting challenge for most homeowners since they are not sure what information they must include in this letter. We will provide you some general guidelines on the essential and critical information that MUST be included in this letter for your Short Sale negotiation to start successfully. But to understand what needs to be included in this letter it would help to explore what this letter is used by your Short Sale Negotiator.
However, before you start seeking Short Sale Expert advice; you should contact the US Department of Housing and Urban Development (HUD) which has Homeowner Assistance Program. In fact, HUD will assign a Counselor to help you navigate your options and they can also initiate a contact with your lender to explore ALL your options.
Once your file has been accepted for review by a Short Sale Negotiator, they will review this letter as the primary indicator of the Material Change in your ability to make your mortgage payments. So, what do you need to include in your letter :
1) Date of the Hardship Event: If you were lost your job, you need to document in the hardship letter when you lost your job and how long you have been unemployed or under-employed.
2) Source of Income: Document in your letter what you have been able to do in the absence of your source of income. State if you have been using your savings or relying on credit cards to make payments.
3) Short Term vs Long Term: It help to document your outlook for your financial hardship and state any reasons as to why you believe that selling your home is the best alternative if you are having a tough time finding a job.
4) Local Unemployment: The odds your Short Sale Negotiators living in the SAME market where you live is slim to none. So if there are market specific conditions that are influencing your employment and housing requirements; you need to document that for your lender.
Contact Us if you having a tough time writing such a letter.