Real Estate Forums

Ask and answer questions, share ideas, offer feedback or encouragement

Join the Conversation

Ask, Answer, Vent

Social Groups

Join other Real Estate Agents that share a common interest, State of Service, or Franchise

Real Estate Social

Join Groups

Featured Articles

Articles for Real Estate Agents, Buyers and Sellers

Real Estate Articles

Browse Articles

Short Sale Hardship Letter

Are you considering a short sale and have been asked to send your lender a Short Sale Hardship Letter?

Not sure what to include and what they want. Here are some general guidelines:

Include the date, and your loan number, property address, and names at the top.

Attention Short Sale Department

To Whom it may concern:

(Explanation of hardship) What changes have occurred in your life since the origination of your loan? Try to keep your hardship letter on one page.

Examples of acceptable financial hardships are:

  • Loss of income
  • Income reduction
  • Business failure
  • Damage to property
  • Death of spouse or wage earner
  • Death of non-wage earner
  • Severe illness
  • Inheritance
  • Divorce
  • Relocation
  • Military service
  • Payment increase or mortgage adjustment

Your Short Sale Hardship Letter needs to detail your specific story. Remember, the person who reads this is a real person. Explain that you would like to help them avoid having to foreclose on the property in default. Explain if you think your situation will or will not improve in the near future. If you lost your job or if you got your working hours reduced, or if you have a roof leak you can’t afford to fix, etc..

In your Short Sale Hardship letter, detail when your hardship started. If you lost a job, tell them the date you became unemployed and let them know the financial impact this has had on your household. Indicate if you are receiving unemployment benefits and the amount received. If divorce has caused hardship, let them know the date of divorce and the financial hardship the separation has created.

If you can identify more than one hardship on your Short Sale Hardship Letter, do so. It is essential to give them a clear understanding of the issues involved in leading you to a short sale.

If the subject short sale hardship letter is for a rental you own, name the rents received, how long the tenant has occupied the home.

Close the Hardship Letter with:

Sincerely, or Thank you for your consideration, and sign your legal name. Your legal name should be the same as the name on your loan. If you share the loan obligation with someone else, they need to sign as well. All involved parties must be in agreement for a short sale to work.

A Real Estate Agent with experience with short sales will generally try to help you determine which information to include in a hardship letter because they know every correction the short selling bank has to request will delay the short sale process.



Post a Question

Ask our community of Real Estate Professionals in the United States your question. Post as a guest or register quickly for a free account.

Real Estate Question

Post as a Guest or quickly create a FREE account.
Post a Question

Submit an Article

Submit you unique article to our Real Estate audience.

Real Estate Question

We are thankful for your dedication to your profession!
Share Knowledge

Through blood, sweat, and tears, I have put together a lengthy list of banks or outsourcers to sign up with to make application for REO Listing work.

Thank you for sharing!

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on tumblr
Share on stumbleupon
Share on digg
Share on reddit
Share on print
Share on email
Real Estate Article
Buyer and Seller Articles
Kim Knox

Earnest Money Deposit

Earnest Money Deposit When putting an offer on a home, you will be required to deposit earnest money after getting an accepted offer.  This deposit

Read More »
Buyer and Seller Articles
Kim Knox

Real Estate Listing Agreement

Real Estate Listing Agreement Types Real Estate Listing Agreement Below are some of the standard Real Estate Listing Agreement types that are available with your

Read More »
Buyer and Seller Articles
Kim Knox

Tasks of a GREAT Listing Agent

Real Estate Forums Ask and answer questions, share ideas, offer feedback or encouragement Join the Conversation Ask, Answer, Vent Submit an Article Submit you unique

Read More »
Buyer and Seller Articles
Kim Knox

Items Sellers Forget When Moving

Real Estate Forums Ask and answer questions, share ideas, offer feedback or encouragement Join the Conversation Ask, Answer, Vent Submit an Article Submit you unique

Read More »
Foreclosure Business
Kim Knox

Short Sale Closing Costs

Real Estate Forums Ask and answer questions, share ideas, offer feedback or encouragement Join the Conversation Ask, Answer, Vent Submit an Article Submit you unique

Read More »
Buyer and Seller Articles
Kim Knox

Short Sale Rejected

Real Estate Forums Ask and answer questions, share ideas, offer feedback or encouragement Join the Conversation Ask, Answer, Vent Submit an Article Submit you unique

Read More »
Buyer and Seller Articles
Kim Knox

Earnest Money Deposit

Earnest Money Deposit When putting an offer on a home, you will be required to deposit earnest money after getting an accepted offer.  This deposit

Read More »
Buyer and Seller Articles
Kim Knox

Real Estate Listing Agreement

Real Estate Listing Agreement Types Real Estate Listing Agreement Below are some of the standard Real Estate Listing Agreement types that are available with your

Read More »
Buyer and Seller Articles
Kim Knox

Tasks of a GREAT Listing Agent

Real Estate Forums Ask and answer questions, share ideas, offer feedback or encouragement Join the Conversation Ask, Answer, Vent Submit an Article Submit you unique

Read More »
Buyer and Seller Articles
Kim Knox

Items Sellers Forget When Moving

Real Estate Forums Ask and answer questions, share ideas, offer feedback or encouragement Join the Conversation Ask, Answer, Vent Submit an Article Submit you unique

Read More »
Foreclosure Business
Kim Knox

Short Sale Closing Costs

Real Estate Forums Ask and answer questions, share ideas, offer feedback or encouragement Join the Conversation Ask, Answer, Vent Submit an Article Submit you unique

Read More »
Buyer and Seller Articles
Kim Knox

Short Sale Rejected

Real Estate Forums Ask and answer questions, share ideas, offer feedback or encouragement Join the Conversation Ask, Answer, Vent Submit an Article Submit you unique

Read More »
Real Estate Post Views: 3,300
Share on Facebook Share
Share on TwitterTweet
Share on Pinterest Share
Share on LinkedIn Share
Share on Digg Share