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Sample Short Sale Letter

This is the short sale hardship letter sample. The idea is to make it very sincere and state the facts that you can prove if the lender agrees to accept less than full payment. Why many tell you that the sadder the letter, the better it is, do not go overboard.


Fax Number

Re: hardship letter – short sale for {your address}

To whom it may concern,

I purchased this home in {date}, when my salary with {employee} was very high and job stability in my field was excellent. Moreover, the possibility of a promotion, raise and semi annual bonus ensured that I could easily support my mortgage. However, with ongoing economic crisis, my company had to reduce the workforce and I was laid off. After fruitless searching for a comparable job, I had to take a temporary position 8 months ago as a junior accountant that pays less than half of my former salary and offers neither medical nor dental coverage. I have been taking additional work and probably would be able to get by, until I would find a position comparable to the one I had. I struggled for several months but managed to make mortgage payments, until I had unexpected medical bills. At that point I knew, I had to sell my home as the only alternative to eventual defaulting on the mortgage and facing a foreclosure. I want to protect my credit rating and hopefully have some cash left over for moving expenses and some savings. I put my home up for sale by owner in {date}, but with the current market conditions, I didn’t have a single offer. In addition, there were few roof leaks and broken second floor window. I simply do not have money to get the new rood and fix that window. I have lowered the price twice with no results.

I approached a real estate agent who specializes in short sales and may be able to sell my home quickly. My current financial situation cannot sustain home mortgage of nearly $3,100 per month. I want to sell the home, avoid foreclosure and salvage my credit. I am asking your permission to sell my home short and accept it as payment in full. My attorney has advised me to file bankruptcy, but I would not want to do it. I hope that you will agree and approve this short sale quickly. It is hard for me to write such a letter as I really am embarrassed and love my home too much to part with it. Unfortunately, this is the only way out for me, save bankruptcy. I appreciate your help and understanding in this matter very much. Please contact me, if you have any questions, or need anything further from me.

Your Name
Phone Number and email address

Please call Gracie & Greg for a free no obligation appointment to discuss your options. It’s best to seek assistance earlier than later, timing is crucial. It is important to face the reality and communicate with the bank. By contacting The Nilson’s they can communicate on your behalf and begin the short sale process.

Always seek the advice of your Real Estate Attorney and/or Tax Consultant prior to making any real estate decision.