How To Write A Financial Hardship Letter

When you are attempting to do a short sale with a bank, you will need to write a financial hardship letter to convince the bank or lending company to agree and let you short sale your home. If this is done incorrectly, the lender may reject your request for a short sale. It is important you get this right on the first try as the lender will find your situation more believable. Here are some things that you should keep in mind when writing a hardship letter.

Make sure to clearly identify yourself at the beginning of the letter. Your full name, address, mortgage company, and your loan number should be clearly identified as the first part of your letter. Lenders need to be able to identify and file you letter quickly and this will help them to keep track of you and your hardship letter.

Keep the letter short and to the point. Your first paragraph should state exactly why you are writing a hardship letter and what you’d like to request from your lender. NEVER put any blame on your lender and don’t criticize or badmouth them in the letter. This will turn them off and will probably get your request denied very quickly. Simply tell them what you are requesting and why.

Include a BRIEF explanation and recount of how your financial hardship came to be. There are many viable reasons for financial hardship. Some of these include, medical complications that would prevent you from maintaining employment, a drastic decrease in salary or loss of employment, a fixed income, or being a single parent w/out child support. Some bad and non-viable reasons for financial hardship include, legal issues, a divorce, if you are a student, if you are overextended, or if you are threatening to file bankruptcy. You should also state whether you believe that your hardship is temporary or will probably be permanent.

Be as detailed as possible. Include dates, names, copies of bank statements, and other documents that physically prove the situation that you are in. The bank will not “simply take your word for it” Give them physical evidence that they simply cannot deny.

Leave all of your current contact information in your letter as well. Phone numbers, addresses, emails, and any alternate contacts should you be unavailable. Make sure the lender can easily get in touch with you.

Be courteous and thankful in you letter. Close by thanking the lender and stating that your statements are all true and correct to the best of your knowledge. Add your signature to the bottom of your letter. If you have a co-borrower, have them sign as well.

These are a few guidelines on how to write a financial hardship letter. If you still need more help, you can find several templates online with a simple google search. Hopefully this will help you avoid foreclosure and complete a successful short sale.

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