Short Sale Hardship Letter

February 28th, 2013 by Jarad

Basics to the Short Sale Hardship Letter

The short sale hardship letter is one of the most common questions I get. How do I fill one out? How long does it have to be? What needs to be mentioned in the letter? These are all great questions. Let me share with you the basics of the short sale hardship letter and even give you an example of one.

short sale hardship letterThose of you familiar with a short sale, you understand that you are building a case to present to the bank. The hardship letter is a key component to building your case and getting your short sale approved. A good hardship letter that is heart felt can literally mean the difference between acceptance and rejection. I may not be as key as the BPO, but it definitely has a great deal of weight when getting these approved.

The short sale hardship letter is basically a letter that will explain to the lender why the current homeowner has not been paying their mortgage payments. And yes it has to be a good reason like financial inability to pay. The best letters are honest, heartfelt and the situation is very bad. The homeowner is the one who needs to write the letter although it’s a great idea to show them some examples. Try to include ugly words such as bankruptcy, foreclosure, and repairs, so it encourages the lender to get rid of the property.

The letter should consist of 4 main points in any order:

1. Homeowners situation / challenges.
2. The offer if one is present
3. The property
4. Ugly words

Sample short sale hardship letter


To whom it may concern,

I am writing this letter to let you know of the hardship I am in. I returned from Iraq and found myself in serious financial
trouble. When I returned I found I was behind on all my bills I have tried to get out of this financial hole but I keep getting
deeper. I still do not know where my ex-wife spent the money while I was in Iraq. It has caused so much stress and grief that
it cost me my marriage. I got divorced in February this year. I now am faced with the same bills but now I don’t have the additional income of my spouse and now I am paying $789.00 a month in child support so now I am getting farther in the hole. I
have been working for the Army National Guard for 10 years, and over 5 years for them as a full time technician. If I declare bankruptcy or if my house gets repossessed I will loose my security clearance and in turn lose my job. Then I will be in an even bigger financial hole. Now I am trying to pay almost $1600.00 a month to live in this 3 bedroom house by myself and I can’t do it anymore. I have lost my marriage and I only get to see my kids a couple times a month and I am about to lose my job due to this financial crisis. So I was hoping you could help me get my life back by letting me do a quick sell on the house. This may be my last chance.


Joe Barnes

This is a good short sale hardship letter that is heartfelt, in a desperate situation and ready to move on. This is a good template to follow.

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