Hardship Letters for Short Sales
Advice: if you are a real estate professional and require your clients to write hardship letters, give them some guidelines on how to write it. Don't let them figure it out on their own, or you'll have a stack of papers as complicated and large as a congressional bill. You don't tell them what to write, but you can instruct them on what hardship letters are and how to write them.
Simply put, hardship letters are short letters that explains what has happened to the borrower or what has changed since the borrower purchased the property, and why they are no longer able to afford the property.
Hardship Letters | 4 questions to answer
What is the hardship? Examples of hardship would be job loss, decrease in hours, divorce, medical bills, death, etc...
What has changed about the situation from when the property was purchased or the mortgage was obtained? The hardship should show that something significant has happened to the homeowner since they signed the mortgage documents and that this is the reason that the mortgage can no longer be paid.
Has the borrower explored all other alternatives such as loan modification or financial counseling or any other options for avoiding foreclosure?
The real estate professional is the best option left to work with me.
Good hardship letters are short, sweet, to the point, and explain the situation such a way that the even a bank employee can understand and empathize.
If you liked 'Hardship Letters for Short Sales' then you may also enjoy other articles written by Phill Grove, the REI Maverick, at www.REIMaverick.com.
Questions and Answers
Article Tags:
hardship letters for short sales
,short sales
,how to write hardship letters
,what are hardship letters
,letter of hardship
,steps to writing a hardship letter
Has your real estate agent told you that you need to write a short sale hardship letter, but you have no clue what to put in it? Here is a quick overview of what to put into your shortsale hardship letter and why it is so important!
Before a homeowner sits down to write the hardship letter for their short sale application, they often ask me how long the letter should be. There are two schools of thought on how long a hardship letter should be. One school contends that a hardship letter should be as short as possible.
A short sale hardship letter is the most important part of the short sales application. Short sale hardship letters are the key to getting approval by the mortgage lender. Applications are accepted or rejected by a Loss Mitigator who works for the lender to try to stop foreclosure. A lender might be looking at stacks of distress letters from other homeowners. Your short sale hardship letter needs to stand out and touch them without crossing the line into being overly emotional.
Short sales are more known now before I started working them when no one knew what a short sale was, and the one thing a lot of homeowners, as well as, don't know that a hardship letter is what most times is the deciding factor whether a short sale is accepted or not. If your hardship letter isn't written correctly then your chances of being approved for a short sale is close to not happening.
The hardship letter is the most important document that you submit to your lender. The hardship letter is necessary if you want your lender to agree upon a loan workout, short sale, deed-in-lieu of foreclosure, forbearance agreement, loan modification, and any other foreclosure solution that requires their cooperation. Your hardship...
70 Percent of businessesfail in their first year of trading. Most fail as a result of poor or NO advertising strategy. Global Brands spend over $25Billion on advertising on the average, most of the budget spent on TV and outdoor advertising. This article will give you pointers on advertising on a tight budget
Many businesses advertise with flyers and getting them into the hands of the general public is of great importance. If the delivery people make a stuff-up in any way, it reflects badly on the company. The company will be blamed if those flyers are left to blow around the streets.
Research has showed that global enterprises are quickly taking center stage in order to effectively promote their products and services.
Advertising today is like the weather. Everyone talks about advertising, but few entrepreneurs do enough about it to change or improve it. When you ask what the "big deal" is with advertising, that's an excellent question, because no matter how you want to view it there is one proven fact which is true of business owners and entrepreneurs worldwide... In today's recessionary spiral, every good entrepreneur wants to do more with less.
A pinback button may look very small but has a lot of significance attached to it. You may be wondering what is there in a button but a close look tells us that each button has their own unique story behind it. Every button is unique and distinct. Think of it as a small portable billboard carrying your message!
Distressed properties saleThe share of distressed properties sales, which includes bank-owned properties (REO) and short sales, was up from 47.2 percent...
New Short Sale Law to Protect Homeowners From Deficiency took affect in California on January 1, 2011, which will protect the homeowners from being sued...
Hacking, Extortion, Death Threats, And International Fame! Last week my fan page was hacked and now it's becoming international news so I'll address it...
Possible changes for home mortgages due to the reduced role of the government in the near future include higher interest rates, higher down payment requirements, and fewer 30 year fixed loan rates. Will these possible changes for home mortgages help or harm the real estate market?
Discuss this Article
