A hardship letter for a short sale due to divorce is a document that explains your financial hardship to your lender. This letter is used to request that your lender approve a short sale, which allows you to sell your home for less than the amount you owe on your mortgage.
In this blog article, we will share templates, examples, and samples of hardship letters for short sales due to divorce. These letters will help you explain your situation to your lender and increase your chances of getting your short sale approved.
Hardship Letter for Short Sale Due to Divorce
Dear [Recipient Name],
I am writing to request a short sale of my property located at [Property Address]. I am currently experiencing severe financial hardship due to my recent divorce.
My ex-spouse and I purchased the property in [Year]. Since our separation, I have been solely responsible for the mortgage payments, property taxes, and other expenses. However, my income has been significantly reduced since the divorce, and I am unable to keep up with these obligations.
I have explored all other options, including refinancing, loan modification, and forbearance. Unfortunately, none of these options are viable for me at this time. A short sale would allow me to sell the property for less than the amount owed on the mortgage, enabling me to pay off the debt and avoid foreclosure.
I understand that a short sale is a difficult decision, but it is the only way I can prevent further financial ruin. I have been a responsible homeowner for the past [Number] years, and I am committed to fulfilling my obligations to the best of my ability.
I am requesting your approval for a short sale in the amount of [Amount]. I have attached supporting documentation, including my divorce decree, proof of income, and a hardship letter from my attorney.
I would be grateful if you could review my request and consider my situation. I am available to meet with you or provide any additional information that may be required.
Thank you for your time and consideration.
Sincerely,
[Your Name]
How to Write Hardship Letter For Short Sale Due To Divorce
A hardship letter is a document that explains your financial hardship and requests a short sale. A short sale is when you sell your home for less than what you owe on your mortgage. To qualify for a short sale, you must prove that you are experiencing a financial hardship.
Gather Your Documentation
Before you start writing your hardship letter, gather all of your financial documentation. This includes your divorce decree, proof of income, and proof of expenses.
Write a Rough Draft
Once you have gathered your documentation, start writing a rough draft of your hardship letter. In your letter, be sure to include the following information:
- Your name and contact information
- The date
- The name of the lender
- The address of the property
- A brief explanation of your financial hardship
- A list of your financial documentation
Proofread Your Letter
Once you have finished writing your rough draft, proofread it carefully for any errors. Make sure that your letter is well-written and easy to understand.
Send Your Letter
Once you are satisfied with your letter, send it to your lender. Be sure to include all of your supporting documentation.
Follow Up
After you have sent your letter, follow up with your lender regularly. This will help to ensure that your request is being processed.
Additional Tips
Here are some additional tips for writing a hardship letter:
- Be honest and forthright about your financial situation.
- Provide as much documentation as possible to support your claims.
- Be patient. It may take some time for your lender to process your request.
By following these tips, you can increase your chances of getting approved for a short sale.
FAQs about Hardship Letter For Short Sale Due To Divorce
What is a hardship letter for a short sale due to divorce?
A hardship letter is a document that explains the financial and personal difficulties that have led to the need for a short sale. In the case of a divorce, the letter should explain how the divorce has caused financial hardship, such as a loss of income, increased expenses, or a change in living arrangements.
What should be included in a hardship letter for a short sale due to divorce?
A hardship letter for a short sale due to divorce should include the following information:
- A brief explanation of the divorce and how it has caused financial hardship.
- A detailed list of the financial difficulties that have resulted from the divorce, such as a loss of income, increased expenses, or a change in living arrangements.
- A statement of the amount of money that is owed on the mortgage and the amount of money that is being offered in the short sale.
- A request for the lender to approve the short sale.
How can I write a hardship letter for a short sale due to divorce?
There is no one-size-fits-all approach to writing a hardship letter for a short sale due to divorce. However, there are some general tips that can help you write an effective letter:
- Be honest and forthright about your financial situation.
- Provide as much documentation as possible to support your claims.
- Be clear and concise in your writing.
- Proofread your letter carefully before submitting it.
What are the chances of getting a short sale approved due to divorce?
The chances of getting a short sale approved due to divorce vary depending on a number of factors, such as the lender’s policies, the financial situation of the borrower, and the condition of the property. However, if you can provide a well-written hardship letter and supporting documentation, you may increase your chances of getting your short sale approved.
What are the alternatives to a short sale?
If you are unable to get a short sale approved, there are other options available to you, such as a deed-in-lieu of foreclosure, a loan modification, or a bankruptcy. It is important to speak with a qualified professional to discuss your options and determine the best course of action for your situation.