Las Vegas Short Sale Specialist

Helping Families Stop Foreclosure

One Short Sale At A Time!


$3,000 - $30,000  Relocation Assistance

For Those Who Qualify

Here's a brief overview and sample hardship letters for upside down home owner(s) facing financial hardship to avoid foreclosure.

I've been coming across homeowners that are trying to contact the loss mitigation department of their lender to negotiate a loan modification. One of the first things a lender asks for is a hardship letter showing why the homeowner has been late with mortgage payments.

A good loan modification hardship letter shows valid reasons for example, been laid off, hospitalized, unable to work, or mortgage loan adjusted, was deceived into a loan (loan fraud) etc.

When putting together your hardship letter, be sure to point out everything you can. It's OK to cry out so someone hears you.

Loan Modification Hardship Letter

To Whom It May Concern:

I have had problems making my monthly payments due to financial difficulties created by my negative amortization loan and my high interest rate. I was sold this loan by a mortgage broker who assured me the quoted payment of $1,748.94 was my full principal and interest payment. Needless to say he was totally wrong and misled me. I was only paying a deferred interest payment which was going to increase my loan balance each month. I have been paying my interest only payment and been struggling due to the high rate of 7.375%

My wife and I are barely making ends meat and we have been dipping into our savings to cover our mortgage payment along with the taxes and insurance. My wife and I were told we could refinance out of this loan but that is obviously not possible since the home is worth less than we owe on our mortgage and the property values keep on dropping in our area.

In order to avoid a future possible foreclosure, I'm requesting a lower interest rate (30 year fixed rate with lower monthly payment) on my current mortgage to Countrywide.

As a long time customer, I'd prefer that the you remain my primary mortgage lender, but without a reduction in the interest rate, I simply can't afford higher monthly mortgage payments.

Our (me and my wife) total annual income amounts to $75,000.00. That income should certainly sufficient just to pay the decent principal and interest monthly payment. We have always paid our bills on time and have an excellent credit rating but cannot afford to pay the minimum payment and have the loan recast; we need help badly and want to retire in this home. We are scared of our current loan and we were completely misled and had no idea about the negative effects of paying the minimum payment. Please help us.

Thank you for your consideration,

Your Signature

To Initiate A Short Sale To Avoid Foreclosure


To: (Name of Your Lender(s) Re: Loan #(s)

From: (Upside Down Homeowner/Sellers)

Address of Subject Property:

Third Party Authorization Letter Authorizing Me To Negotiate The Short Sale Payoff of Your Loan On Your Behalf As Your Realtor, Certified Las Vegas Short Sale Specialist

As Your Realtor and Certified Las Vegas Short Sale Specialist, I will submit your completed short sale package along with a short sale proposal to your lender(s) including: Third Party Authorization (allowing me to speak with your lender(s) on your behalf to negotiate the short sale payoff amount, Hardship Letter, RMA (Request for Mortgage Assistance), Financial Statement, Tax Returns (3 years), Recent Pay Stubs, Bank Statements (3 months), Listing Agreement, Short Sale Addendum, Executed Purchase Contract With Short Sale Addendum From Qualified Buyer, Buyer's Proof Of Funds, Financial Pre-Qualification (when financing) In An Effort To Help You Avoid Foreclosure (Arms Length Transaction)

Sample Letter Of Short Sale Proposal

TO: The Loss Mitigation Department of ABC Lender(s)

ATTN: Mr. James Jefferson, Loss Mitigation Specialist


RE: Short Sale Proposal for 123 Main Street, Las Vegas, NV  USA

Dear Loss Mitigation Specialist,

We have a signed real estate purchase contract with your borrower Daniel and Sandy Smith, the owners of 123 Main Street, Las Vegas, Nevada, USA. The Smiths have agreed to sell their property to Lee and Sandra Jones for a purchase price of $255,000. The current loan balance for loan(s) #0045678123009 #1236798007 is $420,000. The Smiths are five payments behind in the amount of $14,000. Since their real estate taxes were not escrow-ed, the current taxes in the amount of $8,000 are also due. Daniel has lost his job as a manager of a large home improvement company and Sandy is a stay athome mom with their three children. Please review the enclosed information. Our market analysis of the property and overview of the market as well as the situation of the seller indicate that it is in the best interest of both you as the lender and the Smiths to accept this buyer’s offer.

I look forward to working together to reach an amicable resolution.


Linda Strasberg, Realtor

Sample Letter of Seller’s Hardship Letter


To Lender(s) Loss Mitigation Specialist:

This is a very difficult thing to write. I have always been able to pay my debts in the past and am truly sorry that I cannot do so now. ie;, examples of hardships: My hours have been reduced due to the current economic climate in Las Vegas/I lost my spouse/I am since divorced/my income has been reduced/my health has been negatively affected due to these circumstances that have unfolded/I lost my job/I have been unemployed for __ months/I am no longer/I am receiving unemployment benefits. My financial situation has been affected by these circumstances and is about one quarter of my previous income. My wife is a stay‐at‐home mom responsible for our three children. We have both been actively looking for employment. We have exhausted our savings. Our credit cards are maxed out and we are in the process of filing for divorce. We can no longer afford to make the $2,800 monthly mortgage payment on our home. We are currently five months behind and see no way to make up the $14,000 in back payments. Our real estate taxes are also due and we have no way to pay those either. We are trying to remain current however the events mentioned above have prevented us from doing so.

We have exhausted all of our options and the only next step is letting the property go to foreclosure.  Due to these circumstances beyond our control, we respectfully request that we be allowed to avoid foreclosure during this most difficult time for us.  Please do not ruin our credit any further and negotiate with our Realtor, Linda Strasberg and allow a short sale payoff. 

We have agreed to sell our property for fair market value based on recent comps provided by our Realtor Linda Strasberg ($255,000). It has been on the market for ____  days and this is the best offer we have received. We want to avoid a foreclosure sale that will further damage our credit. We respectfully request that you consider this offer and work with our Realtor, Linda Strasberg to negotiate a shortsale transaction.  At closing we kindly request financial assistance with our relocation.


Daniel and Sandy Smith
(1 of Hundreds of Families in Las Vegas Opting To Short Sale to Avoid Foreclosure;
Unemployment Rate: 13.6%)


Seller’s Financial Information

An owners’ financial statement can be constructed very simply with a list of assets and liabilities. Assets Real estate Stocks, bonds, mutual funds Bank accounts Personal property Retirement accounts Liabilities Real estate loan(s) Personal loans Credit card debt IRS liens Judgments Lawsuits 

Lenders will want the amount of all the monthly expenses in addition to the assets and liabilities. These would include: Credit card bills Utility bills Car payments Insurance costs Food and clothing Medical bills Child support Tuition expenses

Supporting Financial Information

These items are typically the same required by a borrower when applying for a loan. The lender will let you know how far back (2 months, 3 months, 12 months) the seller needs to go in supplying this information.

Pay stubs Pay stubs allow the lender to see if the monthly take‐home pay would cover the loan payments plus all the other monthly expenses. If the owner is unemployed, there will be no pay stubs to include.

W‐2s and/or tax returns The lender is trying to get a complete picture of the owner’s financial situation. Is the income going up? Is the income going down? Will the borrower be able to make payments if the lender agrees to a repayment program?

Bank statements and credit reports Again, the lender wants to be sure the borrower is truly unable to make the payments and these support that. The bank will order a credit report on the borrower but if we have one available attaching it is a benefit.

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 Las Vegas Certified Short Sale Specialist, Linda Strasberg, All Rights Reserved