What is a Short Sale Hardship Letter?
A short sale hardship is a circumstance beyond your control that has resulted in you no longer being able to afford to make your home mortgage payments. As part of the short sale process, you must submit a short sale hardship letter to your home loan lender that explains the circumstances that led to your financial difficulties and outlines your current financial situation.
What is a Short Sale?
In a short sale, your lender agrees to let you sell your home for less than the balance you owe on your home mortgage. The foreclosure process is expensive, and lenders generally don’t want to own homes, so agreeing to a short sale is often in the lender’s best interest.
Do You Qualify for a Short Sale?
Not every homeowner qualifies for a short sale. Every situation is unique, but the general criteria for qualifying for a short sale are:
- You need to sell your home.
- You owe more on your home mortgage than your home is worth.
- You have a personal financial hardship that will prevent you from making future home mortgage payments.
Examples of Short Sale Hardships
Acceptable short sale hardships include:
- Loss of job
- Divorce / Separation
- Reduction in income
- Death of a spouse
- Medical expenses from a serious illness
- Job relocation
- Military service
- Mortgage rate adjustments
Situations that do NOT qualify as short sale hardships include:
- Being underwater on your home
- Needing a more suitable home
- Increasing the size of your family
How to Write a Successful Short Sale Hardship Letter
Your financial hardship letter can make or break the chances of your lender agreeing to a short sale. Washington Property Solutions will walk you step by step through the process of writing a short sale hardship letter that will provide you with the best possible outcome. We have helped over 1400 Washington homeowners successfully avoid foreclosure and get a fresh start, with no out-of-pocket cost to you. You can trust us to take care of all the details.
Have You Applied for a Home Loan Modification?
Many people don’t realize that even though you have applied for a home loan modification, the home foreclosure process clock keeps ticking. The lender will continue to move forward with the foreclosure process as the loan modification request is reviewed. If your request for a home loan modification is denied, you need to have a Plan B in place to avoid foreclosure.
Since every homeowner’s situation is different, we always recommend that you speak with a professional who can advise you on the legal and tax implications for your circumstances.
Washington Property Solutions offers FREE real estate attorney consultations as part of our service.
Call us at 425-381-2233 to schedule a free confidential consultation.
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