If your lender is going to consider taking a short sale, they need to be convinced that something has happened to the borrower that will make it impossible for the borrower to recover from. . .a financial hardship.
The hardship letter is a way to convey that message to your lender.
In most cases, the hardship letter should be written in the borrower’s own handwriting and it should convey a very specific point. It should tell the bank beyond a shadow of a doubt that the borrower has exhausted all means of being able to save the home from foreclosure and that a short sale is the only way that the home can be sold to avoid a foreclosure sale.
The main point of a hardship letter is to write your economic standing in a very descriptive way. Explain why you were unable to pay your mortgage as was supposed. You can mention reasons of non-payment such as illness, death of spouse or anything that might have brought on your inability to pay.
Remember, a hardship letter is just a little part of a short sale. ..but all has to fit.
If a short sale is a song. . .the same music has to be sung during the hardship letter and any prior loan modification attempts with your lender. . .they record everything your file.
The most important thing you need to know is that transparency in communication is a very important factor for a lender.
For more tips how to write a letter, give me a call, I’ll be glad to help