How to write a short sale hardship letter?

 
The short sale hardship letter is the most critical part of getting your short sale approved.  What you say in your short sale hardship letter can make or break your deal.  Therefore, you must understand what key points to include and what to leave out of your letter to make it as effective as possible.
 
Experts suggest that only one in ten short sale applications gets approved.  One of the main reasons why short sales get rejected is because most people don’t fill out a complete short sale package as per the bank’s instructions.  So putting serious thought into your hardship letter so you increase the odds of getting your short sale approved is key, as it is by far the most important document you can provide in a short sale offer.
 
You want to create a compelling, heartfelt short sale hardship letter that strikes an emotional chord with the loss litigator who is reviewing your short sale package.  The loss litigator's job is to obtain the highest dollar amount for the mortgage note, but remember, that they are real people with real emotions.  If you can strike an emotional chord with the loss litigator, you will enhance your chances of getting your short sale approved. 
 
When crafting your short sale letter, you should:

1. Express embarrassment at your situation.
2. Be honest with what happened.
3. Don’t hold back key details, even if they are hard to share (because of shame)
4. Everything you say you must be able to PROVE
5. Take responsibility for what happened.
6. Maintain a positive tone of voice.
7. Express gratitude to the bank for reviewing your short sale.
8. Emotional plea for help – “I am in distress and I need your help.”

 
You need to avoid:

1. Don’t fabricate a sob story – remember that your bank can ask for proof for anything you are telling them.
2. Don’t tell them you are lousy at finances.
3. Don’t tell them you purchased things you don’t need.
4. Don’t blame others for what happened.

​For more expert tips, please contact us.