[Sample] Short Sale Hardship Letter

Key Takeaways

  • Understand the purpose of a short-sale hardship letter.
  • Learn the essential components to include.
  • Discover how to effectively convey your situation.
  • Get tips on maintaining a professional and sincere tone.
  • Access a sample letter for guidance.
  • Find answers to common questions in our FAQ section.


A short-sale hardship letter is a critical document in the process of selling your property for less than the amount owed on the mortgage. 

It is your opportunity to explain to your lender why you are facing financial difficulties and how a short sale can be a viable solution. 

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This letter should be honest, concise, and compelling, providing a clear picture of your circumstances without being overly emotional.

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Sample Short Sale Hardship Letter

[Your Name]
[Your Address]
[City, State, ZIP]
[Phone Number]
[Email Address]

[Lender’s Name]
[Lender’s Address]
[City, State, ZIP]

Dear [Lender’s Representative Name],

Subject: Request for Short Sale – Loan # [Your Loan Number]

I am writing to request a short sale of my home located at [Your Property Address]. 

Due to [specific hardship reason – e.g., job loss, reduced income, medical expenses, divorce, etc.], I am unable to continue making the mortgage payments.

[Provide a detailed explanation of your hardship, focusing on the events that led to your current financial situation. 

Be specific about dates, amounts, and impact. Keep it factual and avoid emotional appeals.]

As a result, I find myself in a position where a short sale appears to be the best option to avoid foreclosure. 

Enclosed are the supporting documents that provide evidence of my financial hardship, including [list documents like bank statements, medical bills, layoff notices, etc.].

I understand the impact a short sale can have, and I am committed to working with your office to make this process as smooth as possible. Please review my situation and consider my request for a short sale.

Thank you for your time and understanding in this matter. I am hopeful for a favorable response and am willing to provide any additional information needed.


[Your Signature]
[Your Printed Name]

Frequently Asked Questions (FAQs)

Q: What is the purpose of a short-sale hardship letter?

Answer: A short sale hardship letter is written to a mortgage lender to explain why you are unable to continue making payments on your home and to request a short sale to prevent foreclosure.

Q: How detailed should my hardship explanation be?

Answer: Your explanation should be detailed enough to clearly convey your situation without being too lengthy. Focus on the key events and factors that have led to your financial hardship.

Q: Can I include personal stories or emotional appeals in my letter?

Answer: While it’s important to be sincere, the letter should primarily focus on factual information. Emotional stories can be briefly mentioned, but they should not overshadow the factual details of your hardship.

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