How to Write a Hardship letter

For those who would like to make a short sale, but find themselves in trouble should know that depending on the situation they’re in, at some point they will certainly need to learn How to write a Hardship letter. When people write one such letter they should know that lenders actually want them to document the specific reasons that came into their hardship and how individuals are planning to get out of their problem.

A great hardship letter will also outline what the individual needs from the lender. That is why everyone finding themselves in such positions will have to write the best hardship letter in order to make it possible for a short sale to take place. Below there are the points by which people have to write their letter:

1. First of all the letter will have to be formatted with the lender’s address, the lender’s name and of course, with the date. It would be helpful in this regard to see a sample hardship letter online. After doing so, the individual will have to insert a few spaces and then place his name and address. The letter will have to be addressed to the professional with whom he has been working.

2. In the first paragraph the purpose of the letter will have to be explained, such as whether the individual is offering an explanation to the circumstances that surround default or whether he wants to sell his home.

3. The circumstances that led to the individual’s hardship will have to be explained very well. In general, when it comes to banks, they will consider such letters when the reason is damage to the property, medical bills, divorce, military duty, death of spouse, job relocation, illness and loss of income. Basically, what lenders are looking for are circumstances which were out of the individual’s control.

4. At this point the individual will need to have the plan he has come up with in order to get back on track, described, which might include reducing expenses and/ or increasing his income. People need to remember that in order to stop foreclosure they need to come up with a plan that convinces the lender. If not, they will not get a second chance and that is not what all of their efforts were for.

5. Last but not least, for making a short sale people will need to have any supporting documentation like medical bills, budget, bank statements and pay stubs attached. After doing so, the hardship letter will have to be sent over to the right institution.

In order to be successful and get an approval, people will have to keep their letter brief, generally less than 3 pages. At the same time it’s also important the individual is truthful about his situation.

 

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