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4 Elements of a Good Hardship Letter

A good hardship letter is key to a successful short sale.

Your hardship should be stated clearly in a cover letter to the bank. Keep it to one page, typed, and signed by you. Be sure to include these important elements:

1. An apology - Tell them you are sorry to be having to ask them to discount the amount owed.
2. Your story - What has happened that has caused you to not be able to make your payments? Be truthful and heartfelt.
3. A statement - Tell the lender that you have exhausted all of your options, and that you are unable to stay current on your mortgage.
4. Important: Make sure to attach any documents, receipts or notices that support the hardship, such as:

• Layoff notice, or proof of reduction in salary
• Health insurance cancellation
• Auto loan repossession warning
• Divorce decree or separation papers
• Letter from your physician
• Disability notice

Your Realtor® will include this letter with the other necessary documents in your short sale packet and submit it to the bank on your behalf.

If you need help writing your hardship letter, or would like to see an example, feel free to contact me.

This entry was posted on Tuesday, August 18th, 2009 at 5:48 pm and is filed under Short Sale - Avoiding Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Michael Bergin - GWSleptHere said at August 23rd, 2009 at 8:50 am

   Good information Noel and proves once again, that the written word is a powerful tool.

   Michael

2. noel said at August 24th, 2009 at 7:04 am

   Hi Michael, thanks so much for your comment. Feel free to visit anytime…I am working hard to write more often. I will be visiting GWSleptHere soon…

3. What is a short sale? – Avoid Foreclosure – Auburn CA Homes | Auburn CA Homes for Sale - Short Sale Specialist said at October 4th, 2009 at 6:47 pm

   [...] What goes in your hardship letter? [...]

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