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}