Most lenders will require the borrower/seller to write a hardship letter. The purpose of this letter is to explain your situation and why you are seeking a short sale.
Here’s a sample letter:
“Dear Bank of ________”:
“I’m sorry to inform you that I can no longer continue to make my mortgage payments. I’ve always been able to pay my bills, but it’s impossible at this time.
“Unfortunately, I lost my job and have been unable to find work. I have been unemployed for over six months now and have been getting by with the unemployment benefits I’ve received. My wife stays home with our children, but she too has been looking for work. During this time we have exhausted our savings and maxed out our credit cards.
“We simply cannot continue to make our mortgage payments and have fallen 3 months behind. There is no way for us to make up these past due payments.”
“We have placed our home on the market and now an offer of $350,000. After being on the market for two months, it is the only offer we have received. We do not want to see the home go to foreclosure. We respectfully request that you consider this offer and work with our REALTOR® to negotiate a short sale.
“This is a difficult decision for us. We hope to make this work because the only next step is to let the property go to foreclosure.
“Sincerely,
“Your names”
Remember the short sale hardship letter should communicate three points:
- We are sorry.
- Here are the circumstances that have caused us to fall behind with our payments.
- We have exhausted all of our options and without a short sale our only option is to go to foreclosure.
Keep the letter no more than one page long. It should be brief, clear, easy to read, and verifiable.
