Writing A Hardship Letter Short Sale Bad Neighborhood

A short sale is an agreement by which you sell your property for less than the outstanding balance on your mortgage. If your lender agrees to a short sale, it means that the difference between the two will be dismissed completely. Unsurprisingly, therefore, it is quite rare for lenders to agree with this proposal. One case in which they may consider it, however, is if you have experienced hardship due to a bad neighborhood.

Basics of Writing a Hardship Letter Short Sale Bad Neighborhood

A hardship letter is a piece of formal correspondence that will be on your permanent record with the lender. You must therefore treat it seriously. These letters are supposed to be short and to the point, including all the important information that supports your request for a short sale. The first thing to do, however, is make sure that you write it in the appropriate formal format, that it is addressed to the right individual, and that it is completely free from spelling and grammar mistakes.

Starting the Letter

Start the letter by explaining that you wish to sell the property, highlighting its address and when you purchased it. Indicate which mortgage company provided you with a loan on the property, the amount of the loan, the duration of the loan, and the type of interest rate. Make sure that you include documented evidence for all of that.

Content of the Hardship Letter

You should then go on to explain that the neighborhood in which you live has changed and has turned into a bad one. Provide dates of key events and highlight those specific events that caused the change. For instance, it is common for taxes to rise year on year (highlight the rates and dates) and that this has caused many people to relocate. Identify the results of the event, such as an increase in crime, drug use, graffiti, or squatters. Again, make sure to provide evidence.

The lender is not looking for a sob story, only for facts. However, you can indicate that you currently feel unsafe at your property, and that this has affected your children or your ability to live a normal, productive life. Both these issues can have an impact on your finances, something that you should again provide evidence for if such is the case.

You should then state that you have been offered a short sale for the property. Indicate the date, amount, and name of the prospective buyers. Explain that you put the property up for sale on a certain date, and that you believe the offer is the best one that you will be able to receive, since the situation in your neighborhood has been on the decline ever since. If there have been any foreclosures in the area, make sure that you include this information as well.

Ending Your Letter

End your letter by expressing your gratitude for your lender’s consideration and time. Explain that you are very sorry about the situation, but that you believe this to be the best solution for all parties involved. Make sure to sign and date the letter, include copies of all your evidence, and send it through registered post.

Hardship Letter Short Sale Bad Neighborhood Example

{Your Name}
{Your Address}
{Your Phone #}
{Your Loan #}

{Date}

To Whom It May Concern:

To Whom It May Concern:

I am writing to request the short sale of the house at {address}, which I bought on {date of purchase}. At the time, {mortgage company} provided me with a {30-year, 15-year, etc.} mortgage of {amount in dollars}, with a {fixed/variable} interest rate.

Ever since {event}, my area has become a bad neighborhood in which to own property. Taxes have increased from {rate} to {rate} per year, while the estimated value of my house has fallen from {value} on {date} to {current value}. As the neighborhood has gotten worse, my neighbors have been forced to relocate, which has led to {squatters/graffiti/drug use/crime}. I feel unsafe going out in my yard, and it has become a struggle just to pay the principal on my mortgage.

I am including the offer from the buyer I found on {date}. I put the house up for sale on {date} and I don’t foresee getting a higher offer than {amount}. Property values have been steadily declining since {approximate time} and show no signs of improving. There have already been {number} foreclosures on my block alone and the situation has become dire. I cannot meet these payments and I am steadily going bankrupt.

I would appreciate any help you can give me regarding these unfortunate circumstances. I have enclosed the relevant financial paperwork that will help to illustrate my current situation, including {explanation of the paperwork you’re including}. I would also appreciate it if we could work out a plan that doesn’t require you to make a negative report on my credit.

I hope that my plan for this short sale is amenable to you. Thank you for your understanding concerning my situation and the necessity of this modification.

Sincerely,

{Sender Name}

Writing A Hardship Letter For Retirement Withdrawal

It is incredibly rare to be allowed to withdraw funds from a retirement account. If it is allowed at all, it is heavily taxed and various other terms and conditions are attached. For instance, you will not be allowed to add new funds to the retirement account for a certain period of time, which is usually 12 months. Most of all, you must be able to demonstrate financial hardship. Nobody ever expects to be in such a situation, but it can have dire consequences on your life and your dependents. Hence, in some cases, consideration may be given.

Specifics of Writing the Hardship Letter

If you do have to write a hardship letter, then you must make sure that you write it correctly. This means that it is written in good English, and is free from spelling and grammatical mistakes. Additionally, you must provide all the necessary information that the company is looking for. This includes your name and address and your account number. You also have to be detailed, telling them exactly how much you want to withdraw, where from, and why.

Indicate that You Are Aware of the Consequences

It is of extreme importance that you make it clear that you are aware of the fact that being allowed to withdraw money from a retirement account is very rare. You should also indicate that you understand that by withdrawing an amount before the expected closing date, you may have to pay a variety of fees, which include early withdrawal fees and taxes.

Describe Your Financial Situation Properly

Naturally, you also have to provide a proper description of your situation. You must be completely open and honest about this, but don’t relate a sob story. Rather, you have to be clear about what has happened, and most of all, clear about what would happen should you not be allowed to withdraw from your retirement account. For instance, you may have to declare bankruptcy, lose your car, find yourself unable to pay for your medical bills, face foreclosure, or be unable to pay for funeral expenses.

Finalizing the Letter and What to Do After Sending It

The final thing you have to add in your letter is an explanation of how you aim to recover from your hardship. In all cases, consideration will only be given if the situation you are in is of a temporary nature. If your situation is such that even with the withdrawal, you will simply be postponing the inevitable, then it is unlikely that it will be accepted.

You should also add any necessary paperwork to your withdrawal request. These should include copies of your retirement account, and also copies of the expenses you have to face, the reason for your hardship (for instance a letter of redundancy), and any other documented evidence that you may have. Do make sure that you keep photocopies of everything that you send, and do send the letter via registered mail, requesting a receipt, if possible. Last but not least, you should regularly contact your retirement fund to determine whether the letter has been received and the status of your request.

Hardship Letter For Retirement Withdrawal Example

{Your Name}
{Your Address}
{Your Phone #}

{Date}

To Whom It May Concern:

My name is {Name} and I have an account with you under Account {Number}. I am writing to request a withdrawal of {monetary amount} from my {Name} account due to extreme hardship.

I understand that by withdrawing money from my 401K before {year}, I am subject to early withdrawal fees in the amount of {monetary amount}. However, I was faced with sudden and unexpected hardship on {date} when {I lost my job/was injured/had a family member die/etc.}. I am now in danger of {foreclosure/crushing medical bills/losing my car/going bankrupt}.

I have attached the necessary paperwork to this letter, documenting my necessary expenses and how the withdrawal will meet these charges.

Please grant me the {amount} so that I can recover from this temporary hardship. Thank you for your consideration and any help you can provide.

Sincerely,

{Sender Name}

Writing A Hardship Letter For Reasonable Accommodation

If you are classed as disabled under the Americans with Disabilities Act (ADA), then reasonable accommodations may need to be made to enable you to work. Indeed, it is a legal requirement for employers to make such provisions. However, it is your responsibility to tell them that you have a disability and that you require such a provision. The best way to do that is through a hardship letter.

Understanding Reasonable Accommodations

Reasonable accommodations are classed as changes or other forms of help to the workplace or the job itself that will make it possible for someone with a disability to perform his or her job. This can be structural (widening a doorway, adjusting lighting), technological (voice-activated software), or strategic (changing uniform or allowing flexible hours).

Requesting for Reasonable Accommodations

It is your responsibility to tell your employer that you have a disability and need a reasonable accommodation. They do not have to anticipate this in other words. Under the ADA, disabled persons have the right to request accommodation, but it is their responsibility to ask for it.

You do not have to write a letter to request an accommodation nor a specific type of wording. In other words, it doesn’t have to be a formal request. However, making a formal request is generally better, not in the least because it leaves a paper trail should your employer take too much time or should you have a dispute at a later stage.

What to Include in the Letter

In your letter, you should make sure that you provide all relevant information. This includes the nature of your disability, the impact of your disability on your life, what parts of your job may require reasonable accommodation, and what specific accommodations are needed. You also need to include a number of key facts, including:

  1. Your name, employee number, and position. Do make sure to include this information, even if the letter is addressed to someone like your immediate supervisor or anybody else whom you are familiar with. It is likely that your letter will travel up the chain of command, going through different departments, and they may not know who you are.
  2. The date, which may be of vital importance if there is ever a dispute at your workplace.
  3. Full details about the disability that you have, identifying it by name and explaining what it is and how it affects you and your ability to perform your tasks.
  4. A complete description of the accommodation that you require. That is, at the end of the day, the point of the letter.
  5. Ideas for accommodation. Perhaps you already know exactly what you need in order to be able to do your job. If so, then you should put this in your letter. Again, don’t make others guess what you need.
  6. Copies of any medical information that you have. For instance, a letter from your physician that explains your condition and how it limits your life can be very beneficial. You could also state that any medical information can be provided upon request.

Hardship Letter For Reasonable Accommodation Example

{Your Name}
{Your Address}
{Your Phone #}

{Date}

To Whom It May Concern:

Due to the hardship caused by my {permanent/temporary} disability, I would like to request {an interpreter/an assistant/reassignment/a modified job site/modified duties}. I write this letter as a request for Reasonable Accommodation under the Americans with Disabilities Act (ADA).

On {date}, {description of event that caused disability, or description of disability when hired}. Unfortunately, my disability keeps me from being able to adequately perform the work required at my job without {accommodation}. At this time, I am unable to meet my job requirements because {description of restrictions caused by disability}. If I were to receive {accommodation}, {projected result}.

The Reasonable Accommodation Act ensures that I receive necessary accommodations, provided that it does not cause undue hardship on {Company Name}. I believe that since it would require {projected effort/cost} and would not compromise safety, interrupt workflow, or inconvenience other workers, this request falls within those parameters. I am a hard worker and with minimal accommodation I can perform my duties to their full extent.

Thank you for your consideration and understanding in this matter.

Sincerely,

{Sender Name}

Writing A Hardship Letter Short Sale Marital Separation

When a marriage breaks down and this results into a separation or divorce, the financial implications are quite significant. Suddenly, two combined incomes need to become two separate ones, with each covering the bills that were previously paid for by two. Additionally, there are other substantial costs associated with the marital separation, including legal costs, moving costs, therapy costs, and more. Hence, it is not uncommon for people in this type of situation to experience hardship. In fact, separation is one of the hardship causes that is accepted as a valid reason by virtually every institution.

Tips for Writing a Hardship Letter Short Sale Marital Separation

If you owned a house as a couple, you may need to sell it as part of your divorce conditions. A short sale means that you are accepting an offer on the house for less than the outstanding balance on your mortgage. If your lender accepts this offer, it means that the resulting shortfall will be forgiven. Unsurprisingly, you need to have a very good reason for the creditor to accept this. Writing a hardship letter is a formal request to do so.

The letter, which must be properly formatted and addressed and should be free from spelling or grammatical errors, you must indicate that you request a short sale. Make sure that the subject line includes your account number. In addition, also provide details about the property and its address. Also indicate who provided the original mortgage, under which terms and conditions, length, amount, and interest rate, as well as whether this was variable or fixed.

Content of the Hardship Letter

Generally speaking, hardship letters are about facts not feelings. This is true in this case, but as it is relating to a marital separation, it is acceptable for some emotive discussion to be included as well. However, overall, the lender wants to know the figures that are involved with the financial difficulties caused by your separation. You must, therefore, provide a brief explanation of the problems that have led to the separation, before highlighting the resulting extra costs (therapy, moving out, legal fees, and so on). Explain that it is not possible for either of the parties to buy the other one out of the property, which means a sale is the only remaining option.

You should then highlight that you have received an offer that would lead to a short sale. Explain who made the offer and when, and the amount offered. You must indicate that you do not believe that you will be able to get an offer that will be higher than the one you have received, and that, if the sale is not agreed to, you will likely move into foreclosure because of the hardship caused by your separation.

Ending the Letter

Finish the letter by showing your gratitude for the lender’s consideration. Show that you understand that the situation is not ideal for the creditor but it is the situation that has forced you to request a short sale. Remember that there is no guarantee that your request will be granted. Hence, always be polite and courteous, regardless of the response.

Hardship Letter Short Sale Marital Separation Examples

{Your Name}
{Your Address}
{Your Phone #}
{Your Loan #}

{Date}

To Whom It May Concern:

I am writing to try to request the short sale of the house at {address}, which I bought on {date of purchase}. At the time, {mortgage company} provided me with a {30-year, 15-year, etc.} mortgage of {amount in dollars}, with a {fixed/variable} interest rate.

Severe emotional and consequently financial difficulties have arisen as a result of marital problems in my home. After {brief, emotional description of family problems}, we suffered income loss due to {stress/spouse moved out/money spent on therapy}. We have worked very hard in the past to make sure that we were financially stable enough to afford the house payments, but we did not foresee the extreme emotional stress and subsequent expense issues caused by this separation.

I am including the offer from the buyer I found on {date}. I put the house up for sale on {date} and I don’t foresee getting a higher offer than {amount}. My spouse has already moved out and I am unable to meet the expenses of the mortgage, maintenance and repair on my own any longer. If I do not sell soon, I may go bankrupt.

I would appreciate any help you can give me regarding this extremely difficult situation. I have enclosed the relevant financial paperwork that will help to illustrate my current situation, including {explanation of the paperwork you’re including}. I would also appreciate it if we could work out a plan that doesn’t require you to make a negative report on my credit.

I hope that my plan for this short sale is amenable to you. Thank you for your understanding concerning my situation and the necessity of this relocation.

Sincerely,

{Sender Name}