You need to sell your
home, but the market wonâ€™t support a price that is high enough to pay off your
mortgage note.Â You will need to do a
short sale, but in order to do so, certain qualifications must be met.
Most importantly, you must have a hardship. This can be anything from the homeâ€™s market value has dropped to
bankruptcy. If you saw my Trulia blog â€“ Short Sale Qualifications â€“ you have
seen the detailed information and some hardship examples.
1. Brainstorm about your hardship. Sit
and write down every idea that pops into your head about why you canâ€™t afford
your house/condo. Why are you having financial difficulties? Why is this
property a strain on your financial situation? Write down every possible
thought that has any affect on your financial situation or you wanting to get
rid of the property. Donâ€™t think too much, just write down whatever pops into
your head. Sit and write until you have at least 5 ideas.
Â¨ Loss of job or job
Â¨ Medical bills
Â¨ Increased property
Â¨ Childâ€™s college
Â¨ Credit card debt
Â¨ . . .
2. Look at your brainstorm list and pick the most obvious ones that have the most
affect on your financial situation and ability to make payments on the home. Look at the list as if you were your Lender.
Which hardships would you look at as the most crucial? Select 3 or 4 hardships,
focus on them and explain exactly why they are affecting your ability to make
payments on the loan.
3. Write the letter. Make your hardship letter less than one page
and in paragraph form. Short sale department reps look through many letters.
They donâ€™t want to be reading a novel to find out why you canâ€™t afford your
At the top of your
hardship letter, type your bank's name, address, phone and fax numbers.
Be sure to date the
Put a subject line:
Request for Short Sale (your loan number and complete property address.
Paragraph 1: State a
change. Mention what change took place and why you can no longer afford your
mortgage payments. Keep is short and simple.
Paragraph 2: State why
your geographic area is poor. "My property is located in ____________. The
taxes have increased, property values have declined, there are 5 foreclosures
in my neighborhood . . . â€œList all bad circumstances for your specific
Paragraphs 3 and 4:
List any of the following and explain using details and specific numbers as
best as you can:
Â Â Â Ã Wrong doing by mortgage loan broker, bad
Â Â Â Ã Hardships (income loss due to job loss,
spouses job loss, increased bills, disability or health problem . . .
Brainstorm from your list.
clearly state that you "cannot pay" and need to short sale the home.
You don't have any other options available.
Sign and give to your
Realtor who will review it with your Attorney and submit it to your Lender.