Question: I requested a short sale from my bank.  Even though I am up to date on my payments, the bank stated they may consider my request.  I need to write a letter of hardship.  What basis of “hardship” can I claim?

Answer: Getting the bank’s attention for a short sale may be difficult without documented missed payments.  However, I never recommend intentionally getting behind on payments.  Banks may entertain granting you a short sale if your hardship is sufficient.

Hardships may be the result of the following:  loss of job or income, sickness, disability, divorce, business failure, adjustment of one’s interest rate, increase of non-mortgage debt, employment related relocation or activation of military duty.

Many folks will seek a short sale simply because their home value decreased and they find them self upside down with their loan.  Traditionally, this is not enough of a hardship for your lender’s short sale negotiator to justify.  Remember, the negotiator will keep your hardship letter in their file for a supervisor’s review.  Give them a much ammunition as possible by drafting a heartfelt and concise hardship letter.

Attorney James Haroutunian practices real estate, estate planning and business law in Billerica at 790 Boston Rd and can be reached with questions at 978-671-0711, prioritylaw.com, hlawoffice.com, or via email: james@hlawoffice.com.  

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