What Is a Letter of Hardship and What Should It Include?
There are some cases where a homeowner is unable to make the necessary mortgage payments for their house. They may; however, be capable of making a short sale. This is when they sell the property, but the earnings are still short of the amount needed to repay the loan. The lender will be taking an overall loss, but the bulk payout can be a strong incentive for them to take the offer. Wheaton short sale attorneys can help those homeowners reach an agreement with the lender.
Wheaton short sale attorneys can also advise you on how to write a letter of hardship. This is an important part of the process that will influence whether the lender accepts the short sale offer.
What Is a Letter of Hardship?
Before making a short sale, you must first write a letter of hardship to the lender. This letter should contain the reasoning behind the short sale and why you are unable to make the required loan payments. The lender will use this letter to decide whether or not to approve the short sale of the property. It should clearly describe your financial situation, how you reached this point, and include supporting evidence.
What Is Considered Hardship?
You can only write a letter of hardship if such a situation actually exists. The accepted circumstances that usually lead to hardship include:
– Too many financial obligations
– A natural disaster
– Job relocation
If you are unable to make the payments because you like spending your money on nice things, then it would not be considered hardship and would not be accepted. Evidence should be included in the letter to support your claim. The evidence may include bank statements, tax statements, or any other financial documentation.
It’s a good idea to get help from Wheaton short sale attorneys as soon as possible. Not only can they help with the letter of hardship, but they can help with the entire short sale process.
Covert & Covert is a law firm with two locations in Warrenville, Illinois and Schaumburg, Illinois. They specialize in foreclosure litigation, short sales, foreclosure defense, and home loan modifications.