subject: What to Put in a Short Sale Hardship Letter [print this page] What to Put in a Short Sale Hardship Letter
A loan in layman words is a debt that is taken from a money lender, a bank or some other financial institution on the condition that it will be repaid in a given period of time. But then, what happens when you happily use up the entire loan and cannot pay the money back in the limited time? Do not worry. There are no problems without a solution. If you cannot pay your loan back to the lender in the given time, you can go for a loan modification. A loan modification is when your lender allows you a decrease in interest rates and an extension in the time limit or something other extension of help.
This modification process can be tiring and puzzling, nevertheless it is a very advisable option for those facing foreclosure. This process involves many phases. One of the phases is to write a short sale hardship letter. In a hardship letter you are requesting the lender to consider your application for loan modification.
More often people hire professionals to write up their hardship letters, but it is always prudent that you write your own letter. The reason is very simple. This letter defines your legitimacy to get qualified into the process. It has to be personal and has to explain your financial position including the concerning issues. And who can be more specific than you when you are writing about your problems?
The basic rule of a hardship letter is to write your economic standing in a very descriptive way. Explain why you were unable to pay back the money as was supposed. Do not keep anything that concerns your monetary ranking. You can mention reasons of non-payment such as illness, death of spouse or anything that might have brought on your inability to pay.
The length of the letter is not significant as long as it serves its purpose. When you are writing the hardship letter, be very careful not to mention anything that you might regret later on because this letter if going to be recorded information in your file, it can pose problems for you later in life.
It would be good if you can mention that bankruptcy is not an option for you at all. It is very important not to give any presumption to the lenders that your present condition is because of them. That would give the wrong impression. Communication is a very important factor.
You might want to write in very clear terms. About what your intensions are, and try not to keep anything back. You also have to request them to acknowledge your buyer's sales contract and approve your application for loan modification.
While sending the letter, the loan number should be mentioned. Your address, phone number and full name should be given. The letter should be sent through certified mail with a request for return receipt.
