Putting your hardship letter to paper

Hardship Short Sale Letter imageThe hardship letter for your short sale package can be quite difficult to write. That’s understandable. You’re working through a financial puzzle that’s complex and emotional.

Breaking the letter down into a simple format can be an easy answer:

1. Hardships: So, what are your current hardships? Unemployment, medical problems (personal or family), disability, divorce, death, relocation, or perhaps a rise in mortgage payments due to loan adjusting. Supporting documentation is helpful (for example, a divorce certificate, a letter from your doctor(s) or a disability statement).

Here are the most important points to get across to the lender:

  • You will not be able to become current again on your loan.
  • You do not have enough income to make the payments.
  • You are leaving the property.

2. Your assets: Explain to the lender that you have no assets with which to continue paying.

3. Signed exemptions of documents: If you do not have bank statements, pay stubs or tax returns, explain in detail why you are unable to provide them. For example: “I haven’t worked in over two years and I’ve failed to file taxes or extensions.”

4. Bankruptcy: Tell the lender, “I don’t want to file bankruptcy.”

Here’s a sample hardship letter for a short sale:

To Whom It May Concern:

I have been unable to make mortgage payments on my house and am now facing foreclosure. My unfortunate and unavoidable inability to make my payments is a result of (your hardship described in detail).

In spite of my current financial difficulties, I expect that this condition will only get worse. I am not in a condition to continue making my current mortgage payments. This was not what I intended but I have come to the conclusion that a short sale is my only option.

Your help and consideration in this matter are very much appreciated.

(Printed name)

Although each task of the short sale process seems monumental, taken one step at a time it will all be accomplished.

Each step brings you closer to the new direction in your life. Let go of the past and move on to your new future.

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