If your lender  is going to consider taking a short sale, they need to be convinced that something  has happened to the borrower that will make it impossible for the borrower to recover from. . .a financial hardship.

The hardship letter is a way to convey that message to your lender.

In most cases, the hardship letter should be written in the borrower’s own handwriting and it should convey a very specific point. It should tell the bank beyond a shadow of a doubt that the borrower has exhausted all means of being able to save the home from foreclosure and that a short sale is the only  way that the home can be sold to avoid a foreclosure sale.

The main point  of a hardship letter is to write your economic standing in a very descriptive way. Explain why you were unable to pay your mortgage  as was supposed.  You can mention reasons of non-payment such as illness, death of spouse or anything that might have brought on your inability to pay.

Remember, a hardship letter is just a little part of a short sale. ..but all has to fit.

If a short sale is a song. . .the same music has to be sung during the hardship letter and any prior loan modification attempts with your lender. . .they record everything  your file.


The most important thing you need to know is that  transparency in communication is a very important factor for a lender.

For more tips how to write a letter, give me a call, I’ll be glad to help


Fernando Herboso