CLICK HERE to obtain NextGEN's Hardship Letter Guidelines



The Hardship Letter is perhaps the most vital document within the Short Sale package we shall be submitting to your lender(s). In most cases your lender(s) will be taking a loss once the short sale is completed. The Hardship Letter provides the homeowner with an opportunity to state their case as to why they can no longer afford to make their mortgage payment.


The Hardship Letter should be an honest, heartfelt statement outlining the circumstances that have created the problem. It should include these components:


  1. A brief apology for having to ask the lender to take a loss
  2. A description of the steps the homeowner has taken (used credit cards, borrowed from family, borrowed from retirement accounts) to stay current on the mortgage
  3. A clear statement that the homeowner has extended all available options to stay current on the mortgage and that a Short Sale is the only remaining option, other than foreclosure.


While it is important for the home owner to provide a complete picture of their hardship, it is also important to avoid a letter that is excessively long.  In order to get a loss mitigator to understand the hardship, the loss mitigator needs to read the letter and connect with the writer. Limit the letter to a manageable length.


If possible, attach to the Hardship Letter any documents, receipts or notices that support the homeowner’s hardship.



  • Layoff notice
  • Letter from employer outlining a reduction in pay or a reduction in hours
  • Cancellation notices for medical insurance or auto insurance due to non payment
  • Delinquency notices from creditors and/or service and utility providers
  • Letters from doctors regarding injury or illness
  • Disability benefits letter
  • Divorce or separation papers
  • Receipt for excessive payments for medications or emergency payments


Please contact our Referral Department at (877) 647-3911 Ext. 6 if you have any additional questions.

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