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Hardship Letter For Short Sale

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    A hardship letter for short sale is written to the bank or your creditor organization to consider a short sale before they formally draw a foreclosure notice on your house.

    Writing a short sale hardship letter is critical because it should be written in a way so that the creditor is convinced he/she cannot gain more by foreclosure.

    You must include evidential information about the current value of the property and the reason for your sudden financial hardship.

    Do not complain about the property, this will only make things worse. Be honest and present your proper financial report. Ask for a confirmation document for tracking purpose as well.

    How To Write A Hardship Letter For Short Sale


    (Name and address of the creditor company)

    RE: (Property address) (Loan identification number)

    Dear Sir/Madam,

    I/We bought the property in question in (purchase date). Since then we all experienced a continuous break down in our economy. Prices of all everyday products have gone higher than ever but our income did not increase proportionately.

    Under such condition I/we are quite unable to pay our contractual regular payments. Over the years the interest rate for the loan has increased by (the percentage) which turned out to be an extra burden for us.

    Also the market value of the house has fallen by (percentage) and made it impossible to refinance. On top of all these our family has experienced some unexpected financial hardship (explain what has caused this hardship like loss of job, death of an earning body of the family, unexpected high medical costs etc).

    For your better understanding all types of financial statements (balance sheet, income statement, statement of expenses, copy of bills etc) are attached here. Under the following circumstances we propose for a short sale contract before you decide to draw foreclosure.

    Hopefully it will be beneficial for both parties. For more formal discussion please contact our realtor (if you have one). Thanks for your consideration.

    Yours Sincerely,

    (Name, signature and address)
    (Account number)

    Click here to learn more on how to write an apology letter for late payment.

    » Loan Modification Hardship Letter Format