hardship letter?
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Thread Starter
Join Date: Sep 2007
Location: ca
Posts: 103
hardship letter?
Hi - wondering if any of you have had to write a hardship letter to a lender. My AH and I are short selling our house (mortgage is greater than sale price of the home) primarily because my husband took out lines of credit against our home so he could finance his addiction. The agent encourages us to be as honest and personal as possible. If I were a lender I can't imagine being willing to forgive debt for someone who was so irresponsible as to borrow against the home for drugs. That is the truth, though, and we are in this situation for that reason.
Has anyone done this before?
thank you.
Has anyone done this before?
thank you.
Member
Join Date: Mar 2006
Location: my own little world
Posts: 9,071
A short sale is usually done with help of the realtor and an attorney here. Have you tried talking to the lender? Id call first and see if there are criteria for a short sale ect. Right now many morgage companies are doing them due to the market decline and to ot have hassel of court fees and auctioning
get it, give it, grow in it
Join Date: May 2007
Location: Calif coast
Posts: 3,167
I helped facilitate a short sale in Ca a few yrs. back when the market was down in 1995for a friend.
No attorney was involved. A realtor was involved only to the extent that the house was
listed for sale at the best price offered.
The short sale was between the mortgage co. and the borrower.
In speaking with them he made it clear that the borrower would walk away and leave the house for them to deal with or he'd stay and keep the house looking fantastic so that it would sell for the best poss. price in a down market.
No attorney was involved. A realtor was involved only to the extent that the house was
listed for sale at the best price offered.
The short sale was between the mortgage co. and the borrower.
In speaking with them he made it clear that the borrower would walk away and leave the house for them to deal with or he'd stay and keep the house looking fantastic so that it would sell for the best poss. price in a down market.
Member
Thread Starter
Join Date: Sep 2007
Location: ca
Posts: 103
Originally Posted by cinderellawkids 
A short sale is usually done with help of the realtor and an attorney here. Have you tried talking to the lender? Id call first and see if there are criteria for a short sale ect. Right now many morgage companies are doing them due to the market decline and to ot have hassel of court fees and auctioning
Member
Join Date: Mar 2006
Location: my own little world
Posts: 9,071
Then I wish you luck and explain the financial hardships of why you cant keep paying and need to sell the house. It shouldnt be a problem.
I just sold a destressed property barely over morgage amount in an assigned contract and the people turned and sold it for $8000 more before the closing even happened, but in the end we are all happy and I had to accept my husbands habit cost alot in profits but it was time to let go and move forward. I wish you the best of luck
I just sold a destressed property barely over morgage amount in an assigned contract and the people turned and sold it for $8000 more before the closing even happened, but in the end we are all happy and I had to accept my husbands habit cost alot in profits but it was time to let go and move forward. I wish you the best of luck
Member
Join Date: Jan 2008
Posts: 108
I wouldn't mention your husband's addiction. Unless the person you're dealing with has experience with addiction, there's a big chance that they won't be sympathetic. If you're not comfortable with hardball negotiations, find a lawyer or someone that is. As someone else pointed out, you have the right in most states to simply walk away. The bank can only take the house, and not come after you for the rest. You would have a default on your record, but not a bankruptcy.
Good luck to you!
Good luck to you!
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