The approval and rejection of short sale proposal mainly depends on the level of hardship letter. A perfectly written hardship letter can help get short sale approved. Hardship letter along other documents is required to be submitted to the bank. In Short Sale hardship letter you provide the solid reasons to show the disability to pay the mortgage payments. If your hardship letter does not prove that you are unable to pay the mortgage installments then the chances of approval get minimized.
In the short sale process most daunting task is to write the hardship letter. Most real estate agents make a big mistake to not properly review the hardship letter and normally consider it another paper with a short sale package. It has been proven that banks prefer to approve the short sales which have a well written hardship letter. A well-crafted letter written by the homeowner may be a determinative factor in getting the lender to agree to a short sale.
Writing a short sale hardship letter is an art that comes with a lot of experience and requires great skills. Here are some suggestions that can be helpful to write an appealing short sale letter.
Don’t Use a Form Letter or Download One From the Internet:
The loss mitigation officers read a huge number of hardship letters every day. You don’t need to write a master piece of content, but you have to tell the lender in your own words, why you are requesting a short sale. The loss mitigation department don’t care about your grammar and they definitely don’t consider that your letter is typed or handwritten. The loss mitigation representative has only one concern and that is whether you qualify for a short sale or not. If you can’t take the time to write your own letter, they probably won’t take the time to read it.
Don’t Try to Explain Your Hardship
The majority of the hardship letters that mitigation department read, tries to explain the unfortunate circumstances surrounding the disability to pay the monthly mortgage payments. Instead of explaining these circumstances a letter should state the actual hardship event, such as divorce or loss of job, and move to the next paragraph. If you are writing a hardship letter, the reader already knows that you are having trouble to make your payments. You need to tell that you are no longer able to make your mortgage payments and not to make a story.
Don’t Blame Others
Don’t try to blame the unrelated things, but simply accept the reality. Instead of blaming others, tell the event that was out of your control and which made you unable to pay mortgage payments. The financial documents you provide should support this declaration. If you are blaming unrelated things and other people you will not be getting anything else except rejection of the short sale proposal.
Don’t Blame The Poor Economy or Real Estate Market
Real estate industry got collapsed and created a lot of problems for homeowners and lenders. If the real estate market didn’t collapse, the person reading your letter might not have a job. Instead of blaming the poor economy and real estate market, it may be helpful to highlight the fact that the property has been on the market at full price for over a year and you didn’t receive any good offer to sell the property. You just need to tell the banks that you attempted to sell the property at a higher price, but you could not make it happen. The bank will examine a multitude of factors, including how long the property has been on the market and whether you have lowered the asking price, in order to determine whether you qualify for a short sale.
Don’t Write a Novel:
Make your letter short, concert and appealing. It should have few sentences, keep in mind that person reading your letter has to read the hundreds to letters. You just need to make your point of view clear and strong in the starting of letter. The sooner you can present the reader with your hardship reason, the more likely they are to approve your hardship request. If you write a great novel type hardship letter it will bury your strongest reason of hardship in the dust of words.
There is no magical formula to get approval of short sale except writing a perfect hardship letter. If you avoid the above given mistakes and focus on what you have to communicate, it can be very helpful to get approval of short sale.