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Today I'd like to share a hardship letter sample with you. However, before revealing the format it is important to understand that in order to obtain short sale approval you must first contact your mortgage lender. Banks do not automatically extend short sales to every borrower. Only those who have extenuating circumstances or the inability to cure mortgage prearranges can apply.
 
This article focuses on a short sale hardship letter. There are several types of hardship letters including foreclosure and creditor letters. All hardship letters allow borrowers to explain the circumstances which caused them to fall behind in their payments. However, the short sale letter is used to convince lenders to allow the borrower to pay less than they owe on their mortgage note.
 
When composing the short sale hardship letter realize a real person will read it. Banks employ loss mitigators to work with borrowers who are delinquent on their mortgage loan. It is not uncommon for loss mitigators to review hundreds of hardship letters each week. Therefore, the hardship letter should be succinct while providing sufficient details. Events should be outlined in chronological order, along with an explanation of actions taken to overcome financial challenges.
 
The following hardship letter sample provides an idea of what to say. Obviously, this information needs to be changed according to your situation.
 
 
Bill and Jane Smith
123 Your Street
City, State and Zip
 
Bob Jones
USA Lender
123 Anywhere Avenue
City, State and Zip
 
 
Today's Date
 
RE: Short Sale Hardship Letter for Your Loan Number
 
Dear Mr. Jones,
 
This letter serves as a request to obtain short sale approval for property located at 123 Your Street, Happytown, Florida. We appreciate the opportunity to explain the events which have caused us to become delinquent on our mortgage loan. Although we have eliminated all unnecessary expenses, we still do not have sufficient funds to become current on our loan.
 
The reason we have fallen behind with our house payments stems from the fact that six months ago my wife and I both lost our jobs. We were both employed at XYZ Corporation for more than ten years. In May, our employer announced they were closing the doors and provided us with two weeks of severance pay.
 
Although we are receiving unemployment benefits, this amount barely covers our monthly expenses exclusive of our mortgage payment. We are extremely concerned because we are falling further behind and do not know how we can pay what is owed. Although we want to pay our outstanding debt to you, we simply do not know how to accomplish this. For this reason we are seeking your assistance in obtaining short sale approval.
 
Engaging in a short sale would allow us to sell the home for close to the amount owed. Currently, we have a buyer who is interested in our property. Please advise what procedures are required to initiate a short sale. We would like to orchestrate the sale of our home quickly and appreciate your prompt response.
 
 
Respectfully yours,
 
Print name of Borrower(s)
Signature of Borrower(s)
Loan #
Address
Phone
email address (if applicable)
 
The hardship letter and supporting documents should be sent via certified mail with a return receipt request. This ensures you will have proof the letter was sent. The return receipt will be signed by someone at the bank and the signature card returned to you for your records.