Alexandria VA Short Sales - Your Hardship Letter And What The Lender Is Looking For
When you are applying for a short sale, the lender will request that you provide a written and signed hardship letter. The hardship letter is an explanation letter that details the events that have let up to your inability to pay your mortgage.
Here is an example:
To whom it may concern:
I am writing to explain what has caused me to be delinquent on my home mortgage. When I purchased my home in October of 2005, I had steady employment and even made a 20% down payment. I have also made over $50,000 of improvements to my home to include extending the kitchen and adding another bathroom.
In September of 2008 I was laid off from my job and was unemployed for over a year. I have found other employment, but my salary has been cut by 40%. During the time I was unemployed, I received unemployment benefits, but it was not enough to cover all of my monthly expenses and I started to get behind on my mortgage. For the past few months, I have been using my credit cards to maintain basic living expenses, but unfortunately am also behind on that debt. Some of my cards have been cancelled due to my inability to pay, and now it has become a challenge for me to keep my home. My credit has suffered, and I am fearful that this has now affected my ability to seek adequate employment.
I have tried for three months sell my home myself as a For Sale By Owner, but did not receive any offers to purchase. After three months, I consulted with a Realtor and learned about a short sale and listed it.
I request that you please consider the offer that my Realtor has received on my home as full payment for my outstanding mortgage balance. I have spoken to a bankruptcy attorney, but do not want to damage my credit any further. I would like to avoid any further damage to my credit and avoid foreclosure.
In this example you see an outline of events from past to present that details the hardship that the owner is facing and shows how the homeowner tried to resolve the problem.
We welcome your comments so that information can be shared to help homeowners across the country.