Chicago Short Sales: How to write a Hardship Letter

Posted on September 20th, 2010 in Short Selling/Buying.

Chicago IL – A hardship letter is one of the most important items in a short sale. This is your opportunity to explain why your lender should approve your short sale and let you walk away from the debt. In clear terms, you need to layout exactly why you can no longer afford to keep the property.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Under no circumstance should you say any of the following. “I don’t want the house anymore.” “It doesn’t make sense to keep the house because it isn’t worth what I owe on the mortgage.” Or, “I can afford the house, but I think paying the mortgage is a bad investment.” Absolutely do not say anything like that. Instead, say the following.

“Our income went down and we can no longer afford the house.” “I lost my job and we are running out of money fast.” Or, “I would love to keep the house, but in our financial state forbids that.” Your hardship letter is your best shot at selling the short sale negotiator on approving the short sale and releasing you from the debt. What you say matters.

Here is a sample layout for a hardship letter.

Your name and the address of the property.

Your mortgage company info and your loan number.

State that you are having problems and would like to sell your property as a short sale.

State the reasons you are having financial problems.

Explain your situation in a little more detail.

Finalize the request.

Put your name down.

Sign and date above your name.

Here are some of the acceptable hardships you can put in your hardship letter.

Loss of job.

Loss of income.

Business Failure.

Unexpected medical bills.

Military Duty.

Death in the family.


Illness of breadwinner.

Forced relocation for work.

Please keep in mind that a real person will read your hardship letter on the other end. That person is probably super busy. It is helpful to bold certain items and keep the letter under 2 pages long.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.  Remember to visit my Chicago short sale blog frequently for updated news and information on Chicago short sales

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725.

View My homes for sale at

Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on how to write a Hardship Letter is provided as a courtesy to our viewers to help them make informed decisions.