Hardship Letter

One of the first pieces of information that the lender will want is a short sale hardship letter describing why you think you should be able to do a short sale on your North County home.  Gary Harmon, your North County Realtor, can help you with ideas for the letter, but the letter needs to come from the seller, be truthful, and clearly explain why you think you have a hardship.

Example 1

To: ABC Lender From: Mr. and Mrs Seller Re: Loan# Hardship Letter Date: 3-25-10
To Whom It May Concern:
As of today, March 2010, we have decided that it is necessary to sell our Oceanside home due to our inability to meet the monthly mortgage obligations. In May 2009, I (Bob) was injured at work resulting in a back injury and was placed on workmen’s compensation. I remained off work until released to modified duty in February 2010.
I have worked for a few companies over the past few years, primarily commission sales. I have applied to several hourly and commission positions, but with my history of workman’s compensation claims and my limited physical abilities, I have not received offers of employment.  During this period I have even cashed out my 401K to help make ends meet, and have recently exhausted these funds.
I (Mary) do have full-time employment. I receive $3,540 gross pay allowing $1,987 net bring home pay. Our monthly living expenses total over $7,600 per month. This includes $3,700 for mortgage and property taxes, making our ability to maintain our mortgage obligation unsustainable. My (Robert) employment prospects are not promising for the immediate future in regards to the income needed to maintain our monthly obligations, thus requiring the sale of our Oceanside home.
Our North County home is currently listed for sale with Gary Harmon, local real estate agent, Prudential California Realty, and the anticipated market value is below our current mortgage obligation, thus requiring a Short Sale approval process to take place.
We apologize for the inconveniences this will cause.
Mr. Seller                                 Mrs. Seller

Example 2

December 19, 2009 To Whom It May Concern:
I have loan #__________________________ with your bank.
I am writing to explain my current financial situation. I separated from my husband 8 months ago and I simply cannot keep up with all of my bills. My basic expenses are way more than I make. I have always been responsible, never been late, but unless my circumstances change, I don’t see how I am going to be able to make further payments.
I’ve cut back on everything but the bare essentials and I am still struggling. My Carlsbad house desperately needs maintenance: there is a leak in my daughter’s bedroom, the paint outside is cracking and peeling, the back door won’t close properly, and I can’t afford to have the huge tree in front cut back. I am really worried it will come crashing down like the neighbor’s tree.
I have asked for help from my husband, but his automotive repair business has been on a steady decline for over a year and he told me that he hasn’t taken a paycheck in five months. He can’t even make his regular child support payments to me. The real estate market is on a major downward trend in our area and with so many Carlsbad houses for sale, there is no way that my Carlsbad home will sell for the amount that I owe, even though it is listed for sale and my agent is really making a strong effort.
I have no one to help me and I am in desperate need.
Thank you for time and consideration.
Mia Imbroke

Example 3

Lender Name/Lender Address/Lender’s Fax Number Today’s Date
RE: Hardship Letter-Short Sale for ___________________Address__________________ To Whom It May Concern: I purchased my Escondido home at ____________ in _____________. At that time I was employed by ___________ and business was very good. My salary and the possibility of a promotion and raise made me sure that I could easily support my mortgage. Unfortunately, a downturn in the market caused my company to reduce its workforce and I was laid off.
After searching for a comparable job, I finally obtained a temporary position as an office assistant and I continue to search for a better position. I struggled for several months to make my Escondido home mortgage payment, and was also hit with some medical payments that I did not expect (the COBRA payment was more  than twice what I was paying when employed). I knew I would have to sell my home to protect my credit rating and possibly have enough cash left over for moving expenses and some savings. I put my home up for sale by owner in ________, but there were several problems that I did not have enough money to fix, such as the broken fence in the back yard and some pretty severe leaks in the roof which indicated a new one was needed. Over the next three months, I lowered the price three times, but I still had no offers. I am now working with Gary Harmon, a top North County  real estate agent and I believe he will be able to help me sell quickly.
I really love my Escondido house, but I know that I cannot afford it. I am a single parent, working as a temporary employee with few benefits and no savings. My financial situation cannot sustain a home mortgage of nearly $2300 per month. I want to sell the Escondido home, avoid foreclosure and salvage my credit. I know that a foreclosure on my record will affect me for years to come. I would ask that you please assist me in avoiding this.
Please accept this offer as payment in full. My attorney has advised me to file bankruptcy, but I prefer to avoid further destruction of my credit. I just want to move on and start over. I deeply appreciate your help and understanding in this matter. If you have any questions, or need anything further from me, please contact my agent or me personally.
Sincerely,Home Owner Address Phone #
Get a summary of  “Short Sale Basics.”  Find out  “How to Qualify for a Short Sale.”  Find, “What are the Advantages of a Short Sale.”  And see “Short Sale Supporting Documentation” a lender may need.  Gary Harmon, your North County Realtor, is a certifiedShort Sale Specialist.”