Keep it simple. The banks do not want anything longer than one page. It should include:

Date you started to get into trouble.
Why you got into trouble (divorce, loss of job, death, increase in interest rate, etc.)
Why you cannot afford the payments
They hardship this has created for you and your family

If you would like me to review the letter i would be happy to do so. My email is TheRoops@TheRoopGroup.com. I have worked with over a dozen short sale and foreclosure deals and have alot of experience in dealing with the banks. I will be happy to help in any way.

Sincerely,

Adam Roop
EXIT Shore Realty
410-912-0310

Dear Home Seller,

First all, I am very sorry you find yourself in this situation. I have consulted with several local attorney's and they all seem to agree that selling your property short (short sale) will have a less negative effect on your credit rating then allowing the property to go to foreclosure.

So let's do the best we can with that hardship letter. It has been my experience that some lenders have a specific form they require be completed. So I would definitely check with your lender first to see if that is the case. Other lenders will accept a letter from you detailing why you are in a hardship position. Be very specific, nothing is irrelevant. The lender may still require additional documentation even after they have reviewed your letter.

Best of luck to you and your family.

A Hardship letter would be a letter stating as to why you fell behind on your mortgage payments. The most common examples are: loss of job, divorce, sickness, and any other reason which is similar.

This is a letter in your own words pleading your default and justifying with facts. One page is sufficient enough, and this will be included within your short sale package.

This is one of the initial documents to begin the process of your new future.