Hardship Letters

How to write a hardship letter

A hardship letter is a letter the seller sends to the bank in which he/she requests the bank to consider a short sale to stop the foreclosure of the home. These letters can often make or break the short sale. The decision to allow for a short sale can be influenced with a sincere story of hardship. It is important to remember that these letters will be read by actual human beings who have sympathy and compassion.

A hardship does not need to be solely a financial matter. Hardships may include unemployment, death or illness, divorce and military service. While writing your hardship letter it is important to include:

• Your present situation and how you found yourself in the situation
• What you have done to change the situation
• Why your situation cannot be changed by anything you can do.

How has your situation changed since the original mortgage was issued? Such changes should be address in the letter. Keep the letter as simple as possible and do not mention how your life will change for the better. But above all, BE HONEST.

Here is a very detailed blog post about writing hardship letters that may help - it even includes a sample hardship letter!