How to Write a Sample Hardship Letter

A Hardship Letter for Short Sale to a bank or financial institution is a letter that you write in order to ask the bank to give you anther chance and consider negotiating a short sale to stop the foreclosure of your home.

In the letter you must:

• State the legitimate, special circumstances you have falling behind on your house payments.
• Explain your current situation and what you are doing to try and get back on your feet.
• Don’t make your situation worse, by complaining to them.
• Be honest and represent the facts clearly.

Here’s a sample hardship letter you can copy and past to your word processor. Don’t forget to include your personal facts in the parenthesis section.

(Lender Name)
(Lender Address)
(Lender's fax number)

RE: Hardship Letter - Short Sale for (your address)

Dear Creditor:

I used to work at (name of the company), a downturn in the market caused my company to reduce its workforce and consequently I was laid off. I struggled for several months to make my mortgage payment, and was also hit with (medical expenses that I did not expect, death in the family, car needed to work broke down, home repair).

Before I was able to find another job, I tried to borrow the money from friends and family, but had no success. I am now temporarily (unemployed, with a new job paying less) and my financial situation right now cannot sustain a home mortgage of ($) per month.

I want to sell the home, avoid foreclosure and salvage my credit. I would ask that you please assist me in avoiding the foreclosure. It will affect my record for years to come. My attorney has advised me to file bankruptcy, but I prefer to avoid further destruction of my credit. I just want to move on and start over.

Or, if given the chance, I feel confident that I can maintain my mortgage payments and stay current. My home is very important to my family and, within my financial means, I will do whatever my mortgage company suggests to help me keep my home.

I deeply appreciate your help and understanding in this matter. If you have any questions, or need anything further from me, you can contact me at (your phone # with area code).

Sincerely,

(Home Owner Name)
(Address)
(Account number)


Keep in mind that Banks and Mortgage Lenders prefer to receive a genuine, personal letter from you, rather than a sample.

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