Many times when the homeowner is requested to pay higher deficiencies and or sign promissory notes, the homeowner feels helpless and it could hold up a short sale. Sometimes this can push homeowners into a Bankruptcy filing even though it might not be the right decision. As the lenders get more sophisticated and more experienced with short sales, lenders will begin to manage this aspect at a higher level and will require better and more accurate hardship letters in order to prevent homeowners having to pay higher deficiencies. The above example is the difference between homeowners writing their own hardship letters verses the letter methodically written by sophisticated software utilizing relational databases. The homeowner in the above example saved $35,000.00. The homeowner invested $129.00 to save $35,000.00. It is likely if the homeowner would have submitted the right mortgage hardship letter upfront, the homeowner probably would not have had to pay a promissory note. Once the lender already has made a decision it is difficult to get them to not want to at least request some money. Hardship letter is one of the most important aspects in negotiating short-sales, loan modifications, personal and business credit card debt and IRS tax liens. A well written letter of hardship can save a homeowner in having to pay thousands of dollars in deficiency balances and or could mean whether the short sale is approved in 30 days or whether it will take 3-4 months. The right letter for hardship may be enough to get a homeowner approved for a loan modification and or a reduction in the principal amount of the loan. A perfect letter with a financial overview could prevent creditors and or debt collectors from filing suit and be more willing to make settlements for 10-40 cents on the dollar. The best time to negotiate business or personal credit card debt is when you are experiencing a loan modification, foreclosure suit (pre foreclosure) and or short sale.

Many Real Estate Agents, homeowners and investors overlook the importance of this document in getting deals closed for short sales. If the lender doesn’t think the homeowner had a true hardship, many times the lender will request the homeowner to pay a higher deficiency balance including cash at closing and or in the form of a promissory note. A recent example is a homeowner was requested to pay $5,000.00 cash at closing and sign a $40,000.00 promissory note by the PMI Company. The PMI Company sent a letter explaining they did not believe the homeowner experienced a true hardship and the homeowner was still making $80,000.00/year. After reviewing the previous hardship letter the homeowner submitted, she basically did not list all of her hardships and how each completely affected her. We had the homeowner use the new service (www.myhardshipletter.com) to write a hardship letter utilizing a new relational database which customized a new letter. The new financial hardship letter for short sale was submitted with a counter proposal and the lender dropped the $5,000.00 cash requirement and settled for a $10,000.00 promissory note. Many times when the homeowner is requested to pay higher deficiencies and or sign promissory notes, the homeowner feels helpless and it could hold up a short sale. Sometimes this can push homeowners into a Bankruptcy filing even though it might not be the right decision. As the lenders get more sophisticated and more experienced with short sales, lenders will begin to manage this aspect at a higher level and will require better and more accurate hardship letters in order to prevent homeowners having to pay higher deficiencies. The above example is the difference between homeowners writing their own hardship letters verses the letter methodically written by sophisticated software utilizing relational databases. The homeowner in the above example saved $35,000.00. The homeowner invested $129.00 to save $35,000.00. It is likely if the homeowner would have submitted the right mortgage hardship letter upfront, the homeowner probably would not have had to pay a promissory note. Once the lender already has made a decision it is difficult to get them to not want to at least request some money.