It is very agonizing for a homeowner to determine whether to Short Sale their home or begin the Foreclosure process. My article entitled How to Short Sale can Prevent Foreclosure goes into detail regarding this question and the possible resolutions. But what I want to discuss is the process of creating the Hardship Letter. I have heard from hundreds of homeowners that they do not want to air their dirty laundry. I am very empathic to their needs because the homeowners are embarrassed and ashamed of there financial hardship.

However, in order for the home mortgage lender to evaluate and understand the homeowner’s circumstances it is imperative to give the home mortgage lender an explanation of the steps that led to their hardship. Homeowners become very emotional and have a very difficult time explaining themselves in a Hardship Letter. Therefore, to assist the homeowner my organization created a Hardship Form. This form asks the homeowners key questions that can trigger them to write the facts in a bullet format that is acceptable to all top mortgage lenders. If any additional information is required by the home mortgage lender during the mitigation process, we contact the homeowner and ask them at that time for those specific answers.

The mortgage Short Sale timeline can be very overwhelming and this Hardship Form has simplified the process of writing a Hardship letter. Below lists 4 key questions which will generate the type of details the lender will require about a financial hardship. Just answer all the questions either in a sentence form or bullet format. Then gather all the remaining documents the home mortgage lender is requesting with this Hardship Form and the mitigation can begin. Keep in mind, a Mortgage Short Sale cannot begin on your home until you have a purchase agreement contract signed.

• What changes or events have occurred since your loan originated that have caused you to fall behind?
• How did this impair your ability to afford your mortgage payments?
• When did the change(s) and/or events occur?

• Do you anticipate any improvement in your financial situation in the near future? Yes or No If Yes, please explain.

Those are the four questions that will need to be answered and can be qualified as a Hardship Letter. My organization has been doing Mortgage Short Sales for years across the United States and we process approximately 250 short sales per month and those 4 questions are acceptable with ANY lender.