Do Hardship Letters Still Matter for Loan Mods and Short Sales?
The new loan mod standards enacted by the Obama Administration pay lenders a lot of money to do a loan mod, and even money to do a short sale. So they have a lot of incentive to work with you. But they also have stricter rules to avoid getting paid by the gubmint to do a loan mod or short sale that should not be done. So given these new rules, how much do hardship letters still matter? Years ago, my wife and I were delighted to move into the nicest neatest little house in Sherman Oaks, California, “south of the Boulevard” which if you know the San Fernando Valley, you know that is the most desirable area, south of Ventura Boulevard. It was a tiny house, 3 bedroom, but only 1400 square feet, but wonderfully designed floor plan. And it had a magnificent yard, and a real solid teakwood hot tub and redwood deck and a full blown sauna lined with cedar. I could go into that sauna just to inhale the cedar smell, it was so wonderful. But when we had babies, the house grew very small. And we we
