Saturday, July 28, 2007

A Better Hardship Letter

I listened to some of your comments about my original hardship letter and wrote a new one:

A-Better-Hardship-Letter

We’re talking:

  • Typed, 14 point Times New Roman font, 1.5 line spacing - apparently some people didn’t like my handwriting - this looks more professional.
  • No more sappy story about me quitting my job, wanting to become a house flipper to better the community, blah blah blah. Just straight forward facts.
  • To the point - my business failed, I got no more money coming, please allow a short sort sale!

I already sent the old one to the banks on the Sacramento properties. But I will use this one for all future short sale packets.

What do you think? Did my hardship letter example help you?

Let me know if you need any other help with your foreclosure situation. I sure know what it’s like.

18 Comments

  • Sorry but… you had a business???

  • New version of the letter looks good to me. I’m wondering why it is called “Hardship Letter” but not “Request for Short Sale …”

    BTW, here’s a blog to San Diego flipping story:

    http://thisoldhouseflip.blogspot.com/

  • “Please consider a ’short sale’ of this property to best limit your bank’s exposure and minimize everyone’s accelerating losses.”

  • Rob… are you making fun of my house buying business?

    HN… I call it “Hardship Letter” because that’s the standard industry term. A hardship letter is not only used for a short sale, it could also be for a loan “work out” for those wishing to keep their houses and just restructure the terms.

    Robert… great tip! This way I am giving the bank BENEFITS for doing a short sale as apposed to trying to make them feel sorry for me getting a bad mark on my credit. I imagine the bank really just cares about “what’s in it for me?”. I think I will incorporate into the letter.

    On the other hand should I have *something* there to illicit some emotion for my situation? I don’t know. I’ve been told to “pull at the heart strings” with a short sale letter.

    I am also not sure If I should keep the “I’m looking for a job” part because I’m not sure if it’s necessary.

  • Q: Rob… are you making fun of my house buying business?

    A: Isn’t a business supposed to make money not loose/waste it?

  • I suggest you keep the “I’m looking for a job” part. Because that’s what you want to do right? It is sincere that you want a full time job.

    You absolutely suck in buying and selling house so going back to holding a day job is a nornal thing to do.

    Although I don’t like RE investors like you who kept bidding up house prices, I truly hope you would get out of this. Although you may get off with the houses, $140K credit card debt will destroy you. If I was you after dealing with the houses, I would file for bankruptcy on my credit card debt. Hey I don’t have any sympathy for credit card companies.

  • Casey:

    I used to read proposals for a living. In essence, your hardship letter is a proposal. And in my experience, hand-written proposals went in the trash. Writing it out only makes the reader frustrated. Then there’s those things called spelling and grammar to consider.

    So you are doing something good by typing it out; the new wording is good, too. Please use 12 point type–14 is too large.

    And I think you’d be better off if you had a job. Really.

  • Do you have any college degrees in engineering or medicine or something that could pay a substantial income? With your skill set, what income could you reasonable generate? If a short sale is not accepted, how many years will you have to work to pay off your debt if housing loses 50% of its value?

  • Uh, I agree with the others… you never had a BUSINESS, you had a gambling problem. Otherwise, the letter is spot on, but I would definitely add Robert Cote’s comments.

    And FORGET about tugging at heart strings. Banks and lenders aren’t Mother Teresa, they don’t have any heart strings to tug on. Keep it business-like always.

  • Typed, 14 point Times New Roman font, 1.5 line spacing - apparently some people didn’t like my handwriting - this looks more professional. No more sappy story about me quitting my job, wanting to become a house flipper […] Continue Reading October 3rd, 2006

  • Casey,

    I work with two bankruptcy attorney’s here in the bay area. Your situation is well to common for many uninformed buyer’s who bought all the hype within the last few years. I’ve negotiated sucessful short sales and the key is knowing how to present it to the lender. The costs associated with a foreclosure are extreme. Believe me the lender does not want to foreclose, you need someone to play hard ball and negotiate for you if they are unwilling to accept a short sale. I’ve dealt with many lenders who were unwilling to cooperate. I work with a very good bankruptcy attorney and sometimes a letter from him or a phone call changes things in a heart beat.

    Good Luck!

  • Keeping you in my prayer Casey, pretty much in the same situation, anyone know of a good bankruptcy attorney in the atlanta area

  • Hello, i love iamfacingforeclosure.com! Let me in, please :)

  • you are still lying casey. stop it.

    1. your business did not fail. buying investment properties is no more a business than buying stocks, gold or whatever. it is an investment.

    2. you are not looking for a job. you are setting up a home office w/ vast guru BS literature, asking mailmen for hot tips, blogging about generating $5K of passive income, etc. which all indicate that you are looking to continue the full time investment thing.

  • Banks and mortgage companies don’t have “heartstrings” Ca$ey.

  • letter looks good, I am going through the same thing right now, I purchased 8 these last 3 years, and will have to short one of them, but thats just part of the game, I like Robert Cote’s comment, about limiting losses. Forget about looking for a job. Their are better ways to make money!

  • I HAVE A CLIENT WHO NEEDS A SHORT SALE BUT HAS ANOTHER PROPERTY. HOW DO I FILL OUT THE ASSET PORTION OF HIS PACKAGE! ANY INVESTOR INTERESTED IN A SAN LORENZO HOME?

  • 18. Ron Legrand
    March 7th, 2007 at 10:00 am

    You should just send a post-it note that says:

    “I am an idiot. Please take away my properties, and ruin my credit so that I cannot buy any more. Thank you.”

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