Letter to the Lender

How would you structure a good letter to the lender justify you case for shortsale with these conditions. The homeowner has hardships and cannot afford the payments. They are recently in Chapter 13 bankruptcy. The area or neighborhood has depreciated in value. The homeowners bought the home for 93,000 but the latest comps for houses that sale on their block are as low as 55,000 and as high as 80,000. New homes in the area are being chosen over existing homes. Houses down the block with the same square feet are selling for 120,000.


Its funny I have all the reasons right here but
Please I need to draft this letter correctly to the mortgage company. I heard from a friend that the reason that they have their own shortsale package is because they never except a shortsale and I want to be the exception to that rule.

Comments(3)

  • tanya121512th March, 2003

    What's wrong with a shortsale package?

    It may be easier for the lender to understand if you make it presentation style using a package format. I think you need to listen to your friend. But, if you want to be the first, then I wouldn't what to tell you.

    You can create a simple short sale package if you choose to. You will need to include a hardship letter from the homeowner's explaining why they can't afford the payments. Read Dwan's post called short sale steps. It will give you an idea of what to include in the package.

    Good luck.

    Tanya

  • HasSpoken17th March, 2003

    Hi folks, whats a short sale package? I understand what a short sale is, but whats with the "package"? Thanks, Tim

  • tanya121518th March, 2003

    It's a package that you create that gives a explanation of why the lender should discount the loan and allow the seller to sell the property to you at a cheap price.

    For example, a homeowner is in foreclosure and owes $99K on a property appraised at $100K. She can't sell her home in a such a short time frame, so she contacts you to help her out. You ask the bank to take less than what is owed, say $50K. Why should the bank take $50K for a $99K loan? That is where the short sale package comes in...

    Sometimes when you ask a bank to discount the mortgage they'll ask you to send them a proposal (package) or they'll send you a short sale package to fill out and return to them.

    Tanya

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