A Hardship letter is required by most lenders to be considered for a short sale. This is your opportunity to appeal to them to consider your short sale request. This should not be used to complain as to what the lender have or have not done to make your situation worse.
The hardship letter must be concise, factual, and convey a legitimate hardship. It can be typed or handwritten, but do try to get your point across in one page. Simply state your request, explain your hardship, how you have dealt with it, and your current situation.
Below is a sample hardship template to help you get started.
Date: xx/xx/2009
To: ABC Mortgage, Attn Loss Mitigation
From: Borrower’s Name
Re: Property Address, City, State, Zip
Loan#: xxxxxxxxxx
To Whom It May Concern:
1st Paragraph – Explain what you want
I am writing this letter to explain my unfortunate set of circumstances that have cause me to become delinquent on my mortgage. I love my home and do not want to lose it, but I have come to terms with the fact that I simply can not afford to keep it. I want to sell the home, avoid foreclosure and salvage my credit. I know that a foreclosure on my record will affect me for years to come, I would ask you please assist me in avoiding this.
2nd Paragraph – Describe your hardship
I was laid off from my work in August of last year and have since been using my savings to pay bills. After exhausting all of my savings, I became delinquent in December of last year.
3rd Paragraph – Describe what you have done to overcome hardship
I have inquired about partial payments, payment plans, refinance, and loan modification; I was denied on all accounts. In February of this year, I put the house up for sale with (Your Realtor’s Name and Brokerage Firm) who specializes in pre-foreclosure properties and short sales.
4th Paragraph – Describe your current situation
I have been borrowing from family and friends for the basic necessities and have been actively looking for another job since my layoff and have had no success to date. We finally receive an offer on the house after xx months on the market and aggressive marketing efforts by my realtor. Please accept this offer as payment in full.
5th Paragraph – Wrap Up
I deeply appreciate your help and understanding in this matter. If you have any questions, or need anything further, please contact my loss mitigator and/or Realtor and/or myself.
Sincerely,
Borrower’s Name
Borrower’s Signature