Check out these short sale hardship letter examples that you can use in the case of a divorce or financial hardship. No one wants to perform a short sale in which a piece of real estate sells for less than the amount that is owned on a mortgage. However, when times get tough, a short sale is often times the best choice to make considering there is a lot on the line. For instance, a short sale is much more beneficial to the seller and the owner than a foreclosure. Compared to a foreclosure, a short sale has relatively minimal impact on the credit history of the borrower and results in larger net gains for the owner of the loans. If you are a homeowner and are unable to meet monthly payments, a short sale may be the best option to prevent you from hemorrhaging money and help prevent anymore further monetary damages.
Whenever you are writing a hardship letter, it is crucial that you present your case to the loan lender in a sincere and simple manner. Dedicate no more than a small paragraph on describing your situation and why you are hoping to short sale your apartment. Keep in mind that you will have to provide evidence to support your statements and explain why you cannot pay your mortgage. It is also important to convey to your lender that you have exhausted all possible options, including borrowing money from friends and family, exhausting your savings and using up your credit card. The lender needs to know that you have tried your best to keep up with your mortgage payments.
Reasons for Short Sale
Some of the most popular reasons why people short sale their house is because of unemployment, divorce, incarceration or death of the principal mortgagor. With the downturn of the economy in 2008, there were many houses that were up for short sale even in places like New York City, where real estate prices have steadily increased for the past decade. If any of these reasons apply to your situation, you should immediately start writing a letter in order to avoid foreclosure.
Sample Hardship Letter For Short Sale – Divorce
To Whom it May Concern:
Recently my husband and I underwent a divorce and as a result, I am no longer able to make my monthly mortgage payment. Having been a housewife for the past 5 years, I am unable to obtain a job that pays much more than the minimum wage of New York State. In addition, I have the full custody of three children. While their father is providing child support, it barely covers food and rent. I have been forced to take up extensive credit card debt just to supplement my meager income.
Although I have tried my best to keep the house, I must come to terms with reality. I do not want to continue spiraling into debt nor do I want to file bankruptcy. As a hardworking and honest individual, I am devastated to find myself in this current situation. I want to avoid a foreclosure at all cost and I hope to work with you on a short sale.
Any help you can provide will be greatly appreciated.