Hardship Letter

A hardship letter is very important for a successful short sale. A hardship letter to creditors explains why the homeowner is unable to make payments and why creditors should accept the homeowner's proposal of the short sale.

Who writes the hardship letter to creditors?

The homeowner is responsible for writing a hardship letter to the creditor. The real estate investor can help the home owner write the hardship letter by giving the homeowner examples of mortgage hardship letters for the homeowner to base his or her letter of hardship on. We will give a letter of financial hardship sample and a few examples of mortgage hardship letters in other section of this Short Sale Information website.

How to write a hardship letter?

A hardship letter to creditors should be as personal as possible. The hardship letter should tell the story of the homeowner and reasons for the distress of the homeowner. Furthermore, the hardship letter is the opportunity for the homeowner to ask the bank or creditor to accept the less payment for the mortgage in a short sale. A good hardship letter is moving and personal and contains full back up proofs of the hardship.

The better the hardship letter to creditors the easier the short sale is. A good hardship letter convinces the creditors that the homeowner is really in distress and that the banks better accept the low offer than going ahead with the foreclosure. The real estate investor and the short sale package sent to the banks will detail the financial figures of what the banks will lose by going through with the foreclosure as well as how much they will make by going the short sale route. A good short sale argument will convince the banks that by accepting the short sale they are best cutting their losses.

• Sample of Personal Hardship Letters
• Sample Financial Hardship Letters