Navigating the world of real estate can sometimes feel like a complex puzzle, and understanding the right paperwork is key to solving it. For homeowners facing financial hardship, a short sale can be a viable option, and knowing how to present your offer is crucial. This article will guide you through the essentials of a Short Sale Offer Letter Sample, helping you understand its purpose and how to craft an effective one.
What is a Short Sale Offer Letter Sample and Why It Matters
A Short Sale Offer Letter Sample is a crucial document that outlines a buyer's proposal to purchase a property for less than the amount owed on the mortgage. This letter is essentially your formal request to the lender to accept a sale price that won't cover the outstanding loan balance. The importance of a well-written short sale offer letter cannot be overstated , as it directly influences the lender's decision and the overall success of the short sale process.
Here's a breakdown of what goes into a good short sale offer letter:
- Clear identification of the property and parties involved.
- The proposed purchase price and proposed closing date.
- A sincere explanation of the seller's financial hardship.
- Supporting documentation demonstrating the hardship.
Consider this table of common inclusions:
| Key Information | Purpose |
|---|---|
| Property Address | Identifies the specific home. |
| Offer Price | States the amount you are willing to pay. |
| Hardship Explanation | Justifies why a short sale is necessary. |
| Buyer's Contact Info | Allows the lender to communicate with you. |
When crafting your letter, think of it as telling a story. You're not just making an offer; you're explaining the circumstances that led to this situation and why your offer is the best solution for everyone involved, including the lender.
Sample Offer Letter for a Standard Short Sale
[Date]
[Lender's Name] [Lender's Address]
Subject: Short Sale Offer for Property at [Property Address]
Dear [Lender's Representative Name or "To Whom It May Concern"],
I am writing to formally submit a short sale offer for the property located at [Property Address]. I understand that the current mortgage balance for this property exceeds the fair market value, and as such, I am requesting your approval for a short sale.
I am offering to purchase this property for $[Offer Price]. This offer is contingent upon your approval of the short sale. I am prepared to close within [Number] days of your approval.
I understand that a short sale is a difficult decision for lenders, and I want to assure you that I have thoroughly reviewed my financial situation and believe this is the most responsible path forward. My circumstances have unfortunately led to a situation where I can no longer afford to maintain the mortgage payments on this property. [Briefly explain the hardship, e.g., "Due to unexpected medical expenses," or "Following a recent job loss," etc.]
I have attached all necessary supporting documentation, including [list documents, e.g., income verification, hardship letter, etc.], to further illustrate my financial situation. I am committed to working with your team to facilitate a smooth and timely closing.
Thank you for your time and consideration of this offer. I look forward to your prompt response.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Offer Letter with a Detailed Hardship Explanation
[Date]
[Lender's Name] [Lender's Address]
Subject: Short Sale Offer and Detailed Hardship Explanation for [Property Address]
Dear [Lender's Representative Name or "To Whom It May Concern"],
This letter serves as a formal short sale offer for the property located at [Property Address]. I am submitting this offer with the sincere hope that you will consider approving a sale price that is less than the outstanding mortgage balance.
My offer to purchase this property is $[Offer Price], with a proposed closing date of [Date]. This offer is conditional on your lender's approval of the short sale.
I am deeply appreciative of your consideration. My current financial hardship is a result of [elaborate on the hardship with more specific details. For example: "a severe and prolonged illness that has resulted in significant medical bills and a reduction in my income. I have exhausted my savings and have no other means to cover these expenses and the mortgage payments simultaneously." or "a significant and unforeseen reduction in my income due to the closure of my employer's local branch. Despite actively seeking new employment, my current earnings are insufficient to meet my financial obligations, including the mortgage for [Property Address]."]. I have provided comprehensive documentation, including [list documents, e.g., medical bills, termination letters, pay stubs, etc.], to support this explanation.
I am committed to cooperating fully to ensure a successful short sale. I believe this solution offers the most favorable outcome for all parties involved compared to foreclosure.
Thank you for your understanding and prompt review of my offer.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Offer Letter with a Specific Closing Timeline
[Date]
[Lender's Name] [Lender's Address]
Subject: Expedited Short Sale Offer for [Property Address] - Closing by [Date]
Dear [Lender's Representative Name or "To Whom It May Concern"],
I am writing to submit a short sale offer for the property at [Property Address]. I understand the urgency often associated with these situations and am eager to proceed with a swift resolution.
My offer for the property is $[Offer Price]. To facilitate a timely closing, I am proposing to complete the sale by [Specific Date, e.g., "October 31, 2024"]. This offer is subject to your approval of the short sale.
My current financial hardship, stemming from [briefly state hardship], necessitates this short sale. I have attached all supporting financial documentation. I am committed to working diligently and cooperatively with your team to meet this accelerated closing timeline.
Thank you for your prompt attention to this matter and for considering my offer.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Offer Letter from an Investor
[Date]
[Lender's Name] [Lender's Address]
Subject: Investor Short Sale Offer for Property at [Property Address]
Dear [Lender's Representative Name or "To Whom It May Concern"],
This letter is to submit a formal short sale offer from [Investor Company Name] for the property located at [Property Address]. We specialize in acquiring distressed properties and are prepared to purchase this property as a short sale.
Our offer to purchase the property is $[Offer Price]. We are prepared to close on this transaction within [Number] days of lender approval. We understand that this is a short sale and are making this offer based on our assessment of the property's current market value and required repairs.
We have reviewed the property's condition and our proposed offer reflects the necessary investments to bring the property to a marketable standard. We are experienced in handling short sale negotiations and aim for a smooth and efficient process.
Please provide us with the necessary short sale package. We are ready to proceed with the required documentation and work closely with your team.
Thank you for your consideration.
Sincerely,
[Investor Signature]
[Investor Typed Name] [Title]
Sample Offer Letter to Negotiate a Deficiency Judgment
[Date]
[Lender's Name] [Lender's Address]
Subject: Short Sale Offer and Request for Deficiency Judgment Waiver - [Property Address]
Dear [Lender's Representative Name or "To Whom It May Concern"],
I am writing to submit a short sale offer for the property at [Property Address]. My financial situation, due to [briefly state hardship], has made it impossible to continue with the mortgage payments.
My offer to purchase the property is $[Offer Price]. I am requesting that, in conjunction with the approval of this short sale, the lender agrees to waive any rights to pursue a deficiency judgment for the remaining balance on the mortgage. This is crucial for my financial recovery.
I have attached all supporting documentation for my hardship. I am committed to making this short sale process as smooth as possible.
Thank you for considering my offer and my request regarding the deficiency judgment.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Offer Letter with an Existing Offer from Another Buyer
[Date]
[Lender's Name] [Lender's Address]
Subject: Short Sale Offer for [Property Address] - Competing Offer Received
Dear [Lender's Representative Name or "To Whom It May Concern"],
This letter is to formally submit a short sale offer for the property at [Property Address]. I am currently facing financial hardship due to [briefly state hardship].
I have received a legitimate offer to purchase this property for $[Offer Price]. This offer is contingent upon your approval of the short sale. I am submitting this to you for your consideration as the best possible outcome to avoid foreclosure.
I have included all necessary documentation to support my hardship. I am eager to proceed with this offer and ensure a timely closing.
Thank you for your prompt review and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Offer Letter Seeking a Relocation Assistance Program
[Date]
[Lender's Name] [Lender's Address]
Subject: Short Sale Offer and Inquiry Regarding Relocation Assistance - [Property Address]
Dear [Lender's Representative Name or "To Whom It May Concern"],
I am submitting this short sale offer for the property located at [Property Address] due to significant financial hardship caused by [briefly state hardship].
My offer to purchase the property is $[Offer Price]. In addition to approving this short sale, I would like to inquire about any relocation assistance programs that may be available through your institution or associated government programs. This assistance would greatly help me transition to new housing.
I have provided all required documentation for the short sale application. I am dedicated to cooperating with your team to make this process as seamless as possible.
Thank you for your time and for considering my offer and my request for relocation assistance.
Sincerely,
[Your Signature]
[Your Typed Name]
In conclusion, a Short Sale Offer Letter Sample is a vital tool for homeowners seeking a way out of financial difficulties while avoiding foreclosure. By clearly communicating your situation, presenting a fair offer, and providing all necessary documentation, you increase your chances of a successful short sale. Remember, these sample letters are templates; always tailor them to your specific circumstances and consult with a real estate professional or attorney if needed.