Updated July 19, 2023
A short sale hardship letter is used by a homeowner to request the lender’s permission to sell the home for less than the outstanding balance on the mortgage. This would allow the homeowner to avoid foreclosure on the property and essentially be cleared from their mortgage debt, aside from owing the difference between the loan balance and the final sale amount.
Because lenders may be in a position to lose money in a short sale, it is typically required for the homeowner to prove that they are in a dire financial situation beyond their control.
Sample
Andrew Jackson
123 Rocky Rd.
San Diego, CA 91911
Oct. 27, 2022
Loss Mitigation Department
Thrifty Regional Bank
456 Pistachio St.
San Diego, CA 91923
To Whom It May Concern,
I’m writing to request a short sale for my home on 123 Rocky Rd., where I’ve lived with my family for the last 30 years. This is not something that I take lightly, but I do feel that at this point, this is my only option.
On March 14, 2022, I was involved in a car accident that severely damaged my spine. I subsequently lost my longtime job as a window cleaner, losing my family’s primary source of income. My hospital bills drained our savings of $15,000. On Aug. 1, 2022, my mortgage went into default. I have maxed out two credit cards trying to put food on the table for my children and spouse, who is unable to work due to a medical condition. I am at the end of my rope as I continue to sustain the wellbeing of my family and manage our growing debt while trying to recover from my own injury that doctors say will take several years to fully recover from.
Under these circumstances, I feel that I have no other option than to request approval of a short sale on my property. Please find attached my bank statements, tax returns, medical documents, and affidavit. I sincerely thank you for your consideration and understanding.
Sincerely,
Andrew Jackson