"Hardship Letter for Shortsale Template"

What Is a Hardship Letter for a Short Sale?

A Hardship Letter for a Short Sale is a typed or handwritten statement prepared by the borrower and sent to the lender to explain the circumstances that led to the payment delay and convince the lender of the necessity to sell the property at a lower price.

Alternate Name:

  • Short Sale Hardship Letter.

You may need to dispose of your residential estate for less than the sum of money that remains on the mortgage. If you find a third party that is willing to buy your apartment or house, the proceeds from the sale will go to the lender - typically, a financial institution that financed the mortgage in the first place. This bank may forgive the difference or require the original borrower to pay the difference between the price of the short sale and the initial value of the mortgage. You can download a Hardship Letter for Short Sale template through the link below.

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How to Write a Hardship Letter for a Short Sale?

Follow these steps to compose a Short Sale Hardship Letter:

  1. Write down your full name and contact details. Identify your loan by its number and date.
  2. Describe your financial circumstances and prove they are not going to improve in the nearest future. You need to justify the sale of your residential property and show how your difficult financial standing does not let you fulfill your mortgage obligations. Show your wish to live up to the terms and conditions of the mortgage and ask the lender to see your perspective. Prove your point by attaching relevant documentation - bank statements, tax returns, medical bills.
  3. Indicate your plan to sell the real estate and confirm the lender they will receive all the proceeds from the potential transaction.
  4. Remember the tone of your letter must remain professional - do not include overly emotional or defamatory statements when explaining your lack of means. You can refer to circumstances beyond your control - for instance, the current global health crisis led to the termination of your employment, and despite your best efforts, you can no longer comply with the terms of the original mortgage.
  5. Add your contact details, thank the recipient of the document for their time and attention, and sign the letter.

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Hardship Letter for Shortsale
From: _​ _ _________________________
To:​ _ _____________________________
Home Owner’s Name
Lender's Name
_________________________________
_________________________________
_________________________________
_________________________________
Home Owner’s Address
Lender's Address
_________________________________
_________________________________
Home Owner’s Account Number
Lender's Fax Number
_________________________________
D ate
Re: ​ H ardship Letter - Shortsale for [​
Y our Address​
]
Dear Creditor,
Since last [​
m onth, year, etc.​
] I am experiencing financial difficulties due to [​
l ayoff,
medical problems, etc.​
] . After having my current financial situation carefully analyzed, I
have concluded that it is no longer possible to comply with the original terms of the
agreement. I have no choice but to ask you for your help in avoiding the foreclosure of
my family’s home.
Due to the dropping of home prices that have affected the entire country in the last year, I
currently owe more on my mortgage than my home is actually worth.
Please consider allowing me into your Shortsale Program so that we can lower the price
and sell the house quickly before it goes into foreclosure. This will allow me to settle my
financial obligation to you and have a chance to get back on my feet, without having to
file for bankruptcy.
Please understand that financial hardships can occur and many times it‘s not a choice. I
deeply appreciate your help in this matter. If you have any questions or need anything
further from me, you can contact me at [​
y our phone number with area code​
] .
I am enclosing my [​
b ank statements, late notices on your car, last year's tax returns, last 6
months of Profit and Loss Statements (if self-employed), last 2 pay stubs for all working
© ​
T EMPLATEROLLER.COM
Hardship Letter for Shortsale
From: _​ _ _________________________
To:​ _ _____________________________
Home Owner’s Name
Lender's Name
_________________________________
_________________________________
_________________________________
_________________________________
Home Owner’s Address
Lender's Address
_________________________________
_________________________________
Home Owner’s Account Number
Lender's Fax Number
_________________________________
D ate
Re: ​ H ardship Letter - Shortsale for [​
Y our Address​
]
Dear Creditor,
Since last [​
m onth, year, etc.​
] I am experiencing financial difficulties due to [​
l ayoff,
medical problems, etc.​
] . After having my current financial situation carefully analyzed, I
have concluded that it is no longer possible to comply with the original terms of the
agreement. I have no choice but to ask you for your help in avoiding the foreclosure of
my family’s home.
Due to the dropping of home prices that have affected the entire country in the last year, I
currently owe more on my mortgage than my home is actually worth.
Please consider allowing me into your Shortsale Program so that we can lower the price
and sell the house quickly before it goes into foreclosure. This will allow me to settle my
financial obligation to you and have a chance to get back on my feet, without having to
file for bankruptcy.
Please understand that financial hardships can occur and many times it‘s not a choice. I
deeply appreciate your help in this matter. If you have any questions or need anything
further from me, you can contact me at [​
y our phone number with area code​
] .
I am enclosing my [​
b ank statements, late notices on your car, last year's tax returns, last 6
months of Profit and Loss Statements (if self-employed), last 2 pay stubs for all working
© ​
T EMPLATEROLLER.COM
borrowers (including L&I and unemployment benefit), authorization to disclose personal
information and anything else you can find that will show full proof of the hardship​
] .
I, _____________________, state that the information provided above is true and correct
Your Name
correct to the best of my knowledge.
Sincerely,
_______________________________
Your Name
_______________________________
Your Signature
© ​
T EMPLATEROLLER.COM
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