Hardship Letter
The hardship letter must be generated by you. Try and keep it at one page. However, since this is a very emotional time for
you, it may be longer and that is fine too. In this letter, you need to tell what has happened. Here are some of the possible
reasons that people may be going into foreclosure: Loss of job, Medical, Divorce, Relocation, Bankruptcy, Death, Arrest,
Incarceration, Drug Abuse, Gambling, Overextended yourself or you are a victim of Predatory Lending (The Loan Officer did
not explain that your payments would go up in future years). Make sure they include these following items:
A. You attempted to sell your house with no success.
B. And the Short Sale request is the last resort short of bankruptcy.
Sample Hardship Letter #1
To Whom It May Concern: RE: Loan #1002345678
We have found our self in a bankrupt situation. We have purchased investment rental properties from ABC Equities and DEF
Homes East which were extremely over appraised. The rehab work performed was only cosmetic and some of the houses are
in need of total rehab; the rest still need a lot of work. We feel that fraud and predatory lending has put us in this dire
situation. We have been contacted by investigators with Fannie Mae and the FBI and we are currently cooperating with them in
their investigation. We are seeking legal advice on a civil action against the loan originators. Our credit has been ruined and
we are financially bankrupt!
No one will buy these homes because the mortgages are way too high for the area. Abode Investments LLC is the only party
interested in purchasing these homes. As you know, we are no longer able to make payments.
We have also enclosed the financial package again as requested.
Sincerely, REMEMBER TO SIGN YOUR LETTER
Sample Hardship Letter #2
Mr./Ms. Banker
Name of Mortgage Company
Address
City, State Zip Code
Dear Mr./Ms. Banker,
I am writing this letter to share some of the hardships I have endured over the past year. As you know, my property located at
8172 Smith Street in Irvine, California is currently facing foreclosure. I have tried to sell the property for months and have
gotten only one serious offer because of the poor condition of the property. Based on the offer I have, I urge you to please
accept the attached offer.
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 am enclosing my bank statements from the past two months, late notices on my car, and anything else I can find that shows
the financial trouble I'm facing. I have also enclosed my last year's tax returns.
I am in the clothing industry and am currently looking for another field in which to work. So far, I haven't had much success.
If there is any other information you need, please feel free to call me.
Sincerely, REMEMBER TO SIGN YOUR LETTER
John Smith