Use a short sale letter when you have a buyer for your house, but the offered price is for less than you owe your lender.
What it means if Your Lender has Recourse.
Two sample short sale hardship letters are provided to get you started. (You can find the second sample letter here).
Use a short sale letter when a buyer makes an offer on your house, but the offer is less than you owe.
If you don't have a buyer, use a Deed-in-Lieu of Foreclosure letter. (Some seller's are now putting their house for sale without pre-approval, hoping their bank will approve a short offer once it's obtained.) Keep in mind your situation is unique. Therefore, you will need to make modifications to fit your individual situation.
A strong letter is important. Many short sale request letters fail because they ramble. Keep your letter simple and make your case quickly.
Sample Short Sale Letter #1
This letter is a request for your cooperation in a "short sale" of our home located at ___________________.
[Sample text regarding reason for request: My husband has been laid off from his job because of a work injury. He worked at Acme Manufacturers for twenty-five years. On June 15, 2006 a forklift ran over his foot and he has not been able to work since then. He receives $2,200 disability every month.]
I work at ______________ but only make ___________a month. Combined we both take home _________ which is not enough to cover our bills and the house payment.
The house is vacant. We are living with my elderly parents.
We have a real estate agent and she has found a buyer for the property with a purchase agreement offer of $__________(itscurrent market value). This offer will not be enough to pay off our existing first and second loans on the property. It is a good offer and the buyer is anxious but I will need both the first and second existing lenders on the property to agree to cooperate in a short sale and therefore accept short payoffs.
Attached is my written authorization for you to speak with my real estate agent, ___________and my escrow officer, __________, at _____________Title Company about this matter. [Ask your real estate agent and escrow officer for their forms.]
I have enclosed a Borrower's Financial Statement and Explanation of Hardship Form for your consideration. [You should ask for these forms from the lender.]
Thank you for your prompt attention to this matter.
Continue to the second sample letter.