Mortgage, Bank Foreclosure, Short Sale

Sample Hardship Letter

The Sample Hardship Letter below can be used as a guide.

  • Don’t forget to insert your own details inside the parenthesis or where appropriate.

  • Delete any information that is not relevant to your case.

  • Always date your letters.

  • And always keep a copy of the letter you send for your records.

Here are a some things you need to know if your offer in comprise or short sale is approved and your home is sold instead of foreclosed.

You won't be getting any money at the closing because you owe more than the house is worth. Depending on your agreement, you may or may not owe the bank or mortgage company some money. For example, if you sell your house under this kind of program and the amount you still owe (the deficiency) is $20,000, then you or someone else still may have to pay that money.

At the closing table, the bank will come in to bail you out with a check to cover the deficiency. But, depending on your hardship letter, you may still owe that money to the Bank. This new debt or deficiency will prevent you from buying another home using the bank until it is paid by you or forgiven by the bank



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

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

Dear Creditor:

Since last (month) I am experiencing financial difficulties due to (layoff, medical problem).

After having my current financial situation carefully analyzed, I have concluded that it is no longer possible to comply with the original terms of the agreement. I have no choice but ask you for your help on avoiding the foreclosure of my family’s home.

Due to the dropping of home prices that have affect the entire country in the last year, I currently owe more on my mortgage than my home is actually worth.

Please consider allowing me into your Short Sale Program so that we can lower the price and sell the house quickly before it goes into foreclosure. This will allow me to settle my financial obligation to you and have a chance to get back on my feet, without having to file for bankruptcy.

Please understand that financial hardships can occur and many times it‘s not a choice. I deeply appreciate your help in this matter. If you have any questions, or need anything further from me, you can contact me at (your phone # with area code.)

I am enclosing my (bank statements, late notices on your car, last year's tax returns, last 6 months of Profit and Loss statement (if self employed), last 2 pay stubs for all working borrowers (including L&I and unemployment benefit.) Authorization to disclose personal information and anything else you can find that will show full proof of the hardship)

I, (your name), state that the information provided above is true and correct to the best of my knowledge.


(Home Owner Name)
(Account number)


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DISCLAIMER: The law will vary depending on your state and the specifics of your case. The information provided by is intended for educational purposes only. All the content on this website should NOT be considered professional legal advice or a substitute for professional legal advice. For such services, we recommend getting a free initial consultation by a licensed Attorney in your State.

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