Question:

When is short sale hardship letter used?

Answer:

A short sale hardship letter is used to convince the lender to accept insufficient repayment of the mortgage debt. If you are a homeowner experiencing financial difficulties, to avoid foreclosure you may try a short sale. The first step to a short sale will be writing a very picturesque short sale hardship letter, and supporting paystubs and bank accounts statements to convince the lender that a short sale is in the best interest of all.

The buyer will be expected to provide a HUD-1 statement to convince the lender that the homeowner is not getting any additional funds from the short sale.

It is in the homeowner's interest to hire an independent appraiser and receive as low an appraisal value as possible. The more repairs the property needs, the easier the lender will agree to a short sale.

If you are a buyer of a short sale property, be prepared to wait. If the short sale has to be approved by the loss mitigation department of a large bank, a short sale transaction may take more than a year to complete.

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Common misspellings: mortage and morgage