Below we will discuss writing your letter of hardship for your short sale application to the lender. Many say this letter is the most important document that will go in your package. The intent of the letter is to let the person reviewing your file know what is going on in your life to make a short sale necessary. Most lenders are looking for verifiable changes in income such as job loss or expenses such as a medical crisis.

Many experts say you should hand write your hardship letter. A handwritten letter is more personal and intimate. If you feel your handwriting is not legible, ask a friend with good handwriting to compose the letter for you. Remember though that you need to sign it yourself.  

At the top of the letter include the date, along with your name, address, phone number and email address, if you have one. Next include the name of your lender, along with your loan number. At the end of the hardship letter include the signature of the borrower(s), as well as the signature of any co-signers, if applicable.

The body of the short sale hardship letter will be used to tell your story. What happened to cause you to fall behind? Were you struck by a serious illness? Were you fired or downsized your job? Did your spouse experience a catastrophic event that caused you to lose time from work? Did you or someone in your family suffer a serious illness that cost a lot of money?  This is the place to explain the series of events that caused you to fall into financial ruin.

Last, but not least, take responsibility. Do your best to maintain a positive attitude, even though it is a difficult and emotionally-draining experience. Do not place blame and never threaten or become defensive when negotiating with the loss mitigator. You will achieve much better results if you remain calm, cool, collected and respectful. You want to present an emotional plea for help that says, "I am in trouble and I need your help." Be grateful for their time and thank them for taking time to review your short sale offer.