Short Sale – Reduction of Income


Your Name
Your Address
Phone Number

Lender Address
Fax Number

Re: hardship letter – short sale for [your address]

To whom it may concern,

I purchased this home in [Year Purchased].  At that time my annual income with [employer] was [insert salary] and job stability in my field was excellent.

[modify to your particular situation] The strong possibility of a promotion, raise and ongoing bonuses ensured that I could easily support my mortgage. Unfortunately, in the past three years my company has had a downturn and I was laid off during staff reductions. After fruitless searching for a comparable job, I had to take a temporary position 8 months ago with pay less than half of my former salary and no medical nor dental coverage.  I have struggled for several months but I managed to make mortgage payments.  I have now exhausted my savings and am rapidly falling behind on my bills.

A review of my financial position clearly shows I am no longer able to make payments on my home.  At this point, selling my home is the only alternative to eventual default on the mortgage and facing a foreclosure.  My attempts to sell the home and cover the amount due your company have proved useless.  I have approached a real estate agent who specializes in short sales and may be able to sell my home quickly provided the home can be sold at a much reduced price.  (S)he has provided a Comparative Market Analysis to best determine an effective selling price.  Based on that analysis, we believe a listing price of $xxx is in order.  A copy of the CMA is included in this package.

My attorney has advised me to file bankruptcy, but I do not want to do it. I hope that you will agree and approve this short sale quickly. It is hard for me to write such a letter as I really am embarrassed to be in this situation.

We have tried to keep the home we love but recognize that is not a financial reality. Unfortunately, this is the only way out for me, save bankruptcy. I appreciate your help and understanding in this matter very much.  Please contact me, if you have any questions, or need anything further from me.



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