What Is a Short Sale Hardship Letter—and How Do You Write One?

When you apply for a short sale, one of the most important things your lender will ask for is a hardship letter.
But what exactly is it? And how do you write one that actually gets approved?
This blog breaks down what a short sale hardship letter is, what lenders want to see, and common mistakes to avoid — so you can move one step closer to relief.

📘 Quick Recap: What Is a Short Sale?
A short sale allows you to sell your home for less than what you owe — with your lender’s permission.
It’s a powerful alternative to foreclosure for homeowners facing financial hardship.
And your hardship letter is your chance to explain why you need that help.

So if you’ve been asking, what is a short sale in real estate, this is one of the key documents that makes it happen.

📄 What Is a Short Sale Hardship Letter?
It’s a written statement that explains to your lender:

Why you can’t afford your mortgage

What caused your financial hardship

Why a short sale is your best option

The tone should be honest, personal, and factual — not dramatic or emotional.

✍️ How to Write a Short Sale Hardship Letter (Step-by-Step)
1. Keep it Short (1 Page Max)
Lenders don’t want a life story — they want facts. Aim for 3–5 paragraphs max.

2. Explain the Hardship Clearly
State the main reason you're struggling (job loss, divorce, illness, etc.), when it started, and how it affected your ability to pay.

3. Be Honest, But Professional
Use a respectful tone. Avoid blaming the bank, market, or others.

4. Show You’ve Explored Options
Briefly mention if you’ve tried loan modification, refinancing, or cut back expenses.

5. Ask Clearly for the Short Sale
Close by asking the lender to approve the short sale and release you from further obligation.

✅ Sample Short Sale Hardship Letter
Dear [Lender’s Name],

I am writing to request your approval for a short sale of my property located at [Your Address].

In [Month, Year], I lost my job due to [brief explanation]. Since then, I’ve been unable to keep up with my mortgage payments despite my best efforts to find new employment and reduce expenses.

I have explored loan modification and other alternatives but have been unable to qualify. I believe a short sale is the best path forward for both myself and your institution.

I am asking for your approval to proceed and respectfully request that you forgive the remaining balance upon sale.

Thank you for your time and consideration.

Sincerely,
[Your Name]

🚫 Common Mistakes to Avoid
❌ Writing a novel – keep it under a page
❌ Getting emotional or blaming others
❌ Leaving out key facts (like dates or income changes)
❌ Copy-pasting a generic template — lenders can tell

Writing a short sale hardship letter doesn’t have to be stressful.
I’ve helped dozens of homeowners get theirs approved — and I can help you too.
I’m Johnny Rodriguez, North Jersey’s First AI-Certified Realtor. Let’s take the next step together.
📲 Call/Text: 973-390-7319
📍 Serving Passaic, Bergen, Essex & Morris Counties

#ShortSale #ShortSaleHelp #HardshipLetter #JohnnyRodriguezRealtor #611Homes #AICertifiedRealtor #RealtyOneGroupLegend #AvoidForeclosure