The Hardship Letter is usually part of the short sale package and is written by the seller or their representative. It is used to explain to the lender the reasons for the borrower’s need for a short sale. Reasons such as divorce, job loss, medical issues, etc. can and should be included. Usually just a one page letter with the pertinent information will suffice.
A simple letter in the following form should suffice:
Date
Lender Name
Address
Loan Number
Dear Sir/Maam,
{In this section explain your hardship and why you must utilize a short sale – some example hardship reasons are listed below}
Unemployment
Reduced Income
Divorce
Separation
Medical Bills
Too Much Debt
Death of my Spouse
Death of a family member
Payment Increase
Business Failure
Job Relocation
Illness
Damage to Property
Military Service
Incarceration
Other (Please Specify)
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
