Hardship Letter Template - Short Sale printable pdf download

Hardship Letter Template - Short Sale

The Hardship Letter

The central document in the Short Sale package that will be submitted to the

mortgage lenders that will be taking a loss is the Hardship Letter. The

Hardship Letter provides the homeowner with an opportunity to state their

case as to why they can no longer afford to make their mortgage payment.

The Hardship Letter should be an honest, heartfelt statement outlining the

circumstances that have created the problem. It should include these

components:

1. A brief apology for having to ask the lender to take a loss

2. A description of the steps the homeowner has taken (used credit cards, borrowed

from family, borrowed from retirement accounts) to stay current on the mortgage

3. A clear statement that the homeowner has extended all available options to stay

current on the mortgage and that a Short Sale is the only remaining option, other

than foreclosure.

While it is important for the home owner to provide a complete picture of

their hardship, it is also important to avoid a letter that is excessively long.

In order to get a loss mitigator to understand the hardship, the loss mitigator

needs to read the letter and connect with the writer. Limit the letter to a

manageable length.

If possible, attach to the Hardship Letter any documents, receipts or notices

that support the homeowner’s hardship.

Examples:

Layoff notice

Letter from employer outlining a reduction in pay or a reduction in hours

Cancellation notices for medical insurance or auto insurance due to non payment

Delinquency notices from creditors and/or service and utility providers

Letters from doctors regarding injury or illness

Disability benefits letter

Divorce or separation papers

Receipt for excessive payments for medications or emergency payments

Any documents supporting a family crisis hardship

Hardship Letter Template - Short Sale