How to write a hardship letter – Part I


As we’ve discussed in previous blogs, Lender(s) and lien holders must all agree to a short sale for its approval. Everyone’s consent is necessary to clear the title on the property. To obtain the required approval, a hardship letter along with many other documents are required to be completed, compiled, and submitted. Every document is important, but standing alone, the hardship letter could be the one document that could make or break the deal. If you’re in financial trouble or are falling behind on your mortgage payments, you should speak with an attorney and real estate agent immediately to discuss your options.

hardship letter property guidingThe hardship letter needs to be a heart wrenching story about your financial situation. If you can get a tear out of the reader, you did it right!  However, personal struggles are not something that most people feel comfortable with disclosing, especially to strangers. But, this is likely their only opportunity to really explain to the Lender that the homeowner’s situation is legitimately distressing and the Lender would be better off accepting a short sale than to pursue a foreclosure. (To learn about short sale basics, visit real estate agent Kristen Pell’s page.)


The hardship letter should be written by hand if at all possible. A word-processed letter on linen letterhead doesn’t scream “HARDSHIP” or “DISTRESS” like a hand written letter does. Of course the Banks primary focus will be on the value, costs, and time associated with whether to pursue a modification, short sale or foreclosure. However, the loss mitigator assigned to your file and ultimately the one who makes the decision, is a real live person with emotions, families, a mortgage, and have likely dealt with their own financial hardships.

No other option

Make sure you convey the seriousness of the situation.  If the Lender knows that there is just no other way to avoid a foreclosure other than a short sale, they are more likely to look favorably upon it. Another thing to keep in mind is that if they believe, based upon your letter, that the hardship is only temporary, than a short sale may not be in your immediate future…

…Stay tuned for next week’s blog and continuation of how to write a hardship letter.  You won’t want to miss it, so make sure you subscribe today!

This is a generalized discussion on short sales in Florida and is not intended for any particular set of facts. By no means does this blog create an attorney-client relationship or privilege between the Attorney and the readers. If you would like schedule a free consultation, or have any questions, comments, or suggestions on upcoming topics, please comment below or email

The Guirguis Law Firm, PLLC
1423 S.E. 16th Place, STE 204
Cape Coral, Florida 33990
239.573.9939 Telephone
239.603.9939 Facsimile

Posted on July 11, 2012, in Legal and tagged , , , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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