How To Write A Short Sale Hardship Letter

If you want to short sale your home, you need to prove to your lender that you really have a need. Banks are not in the business of giving handouts. They need a good reason to accept your short sale and forgive your delinquencies.

That’s where the short sale letter comes in. You may have heard of it but not realized its importance. This letter explains to your lender why you cannot make your mortgage payments, and why you are trying to get a short sale. If written properly, it can be a powerful tool in getting your short sale approved.

Here are some things to keep in mind.

  • Write it yourself. You are the only person who can convincingly tell the lender your story.
  • Explain your circumstances clearly. Was it a job loss, an illness, a divorce, or something else that led to your inability to keep up your payments? Make sure your reasoning can be backed up with financial documents.
  • Tell the lender you are trying to avoid bankruptcy. They will be unlikely to seriously consider your short sale if they think you intend to file bankruptcy.
  • Don’t blame the lender for your problems! You are trying to persuade them, not alienate them. They won’t appreciate having the blame for your situation piled on them.
  • Ask for what you want. Tell them up front you want a short sale approval. Don’t forget to ask them to forgive any deficiency amount that might arise.

Just remember that lenders are in the business of making money, but also remember that behind the suit is a person who wants to be treated with respect just like anyone else. Keep those principles in mind and you should should be well on your way to a successful short sale.