Short Sale Story (Cont… #4) Hardship Letter
BySo client X thought it would be helpful to share the hardship letter he sent in to his lender along with his short sale package. It’s kinda scary to say that this letter hasn’t been changed in any way, nor has it been embellished- this is all true stuff:
“Dear Loss Mitigation Manager,
I have been paying the debt on loans xxx and xxx to the best of my abilities at the address; xxx. The amount of these two loans totals approximately $174,000.00 and the property value as I have seen through comps of the area is roughly $55,000.00. Despite the difference in these numbers I continued to make my payments in hopes that the economy would rebound and bring my property value back up.Unfortunately, the best intentions can still have unpleasant outcomes and I am currently unable to continue to pay for my house. My wife lost her job for a few months a year ago and things have been a struggle ever since then. She was able to get another job later but with a reduced income. To the best of my knowledge she is still employed but I was laid off from my job about four months ago and haven’t been able to find anything that will provide the same income that allows me to take care of my mortgage. Since then, my wife also left me and I’m currently going through a divorce. Needless to say, between being unemployed and not having my wife’s income my money for bills has been reduced to almost nothing.
I tried to reduce my costs in hopes of maintaining ownership of the house by disconnecting my cable, disconnecting my internet service and not using my air conditioner or heater unless necessary. I even sold all of my furniture to use the money for bills. In addition I have been applying for jobs in and out of my field of expertise and have not had any leads come to fruition. I’m sure you don’t need me to tell you what the unemployment numbers are like in the country and especially Arizona but it has been extremely hard to even find places that are hiring.
Due to this, I honestly feel that the best solution is to attempt a short sale of my house in an effort to repay as much debt to the mortgage company as possible. Although I understand that a short sale of my property isn’t ideal, I do not wish to foreclose on the house or file bankruptcy if I can avoid it. I feel that a short sale would be the best alternative to these options and hope that a compromise can be reached.
Thank you for your time in reading this letter and considering the information above. If you have any questions or would like details on anything I would urge you to contact my attorney at xxx.”