How do I write a short sale letter?

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 $__________(its current 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.