What Should I Write in a Hardship Letter?

Crafting an Effective Hardship Letter for Your Short Sale in Minnesota

When pursuing a short sale in Minnesota, your hardship letter plays a pivotal role in conveying your financial situation to your lender. It's your opportunity to explain the circumstances that have led to your inability to meet mortgage obligations and to request consideration for a short sale.

Key Elements to Include in Your Hardship Letter

• Personal Information: Begin with your full name, property address, loan number, and contact details.
• Statement of Intent: Clearly state that you're seeking approval for a short sale due to financial hardship.
• Explanation of Hardship: Provide a concise narrative of the events leading to your financial difficulties, such as job loss, medical emergencies, divorce, or other unforeseen circumstances.
• Efforts Made: Detail the steps you've taken to remedy the situation, like attempting loan modifications, cutting expenses, or seeking additional employment.
• Current Financial Snapshot: Offer a brief overview of your current income, expenses, and assets to illustrate the unsustainable nature of your mortgage payments.
• Request for Short Sale: Politely request the lender's consideration for a short sale as a viable alternative to foreclosure.

Tips for Writing an Effective Hardship Letter

• Be Honest and Concise: Stick to the facts and avoid embellishments. Lenders appreciate transparency.
• Maintain a Professional Tone: While it's essential to convey the seriousness of your situation, avoid overly emotional language or placing blame.
• Limit Length: Aim for a one-page letter to ensure clarity and maintain the lender's attention.
• Proofread: Ensure your letter is free from grammatical errors and typos to present a polished and professional document.

Sample Hardship Letter Template

Here's a basic template to guide you:

[Your Full Name]
[Your Address]
[City, State, ZIP Code]
[Phone Number]
[Email Address]
[Date]

Subject: Hardship Letter for Short Sale Request

Dear [Lender's Name or "To Whom It May Concern"],

I am writing to formally request your consideration for a short sale of my property located at [Property Address]. Due to [brief explanation of hardship], I am no longer able to meet my mortgage obligations.

Despite my efforts to [mention any steps taken, e.g., seek loan modification, reduce expenses], my financial situation has not improved. I believe that a short sale is the most viable option to avoid foreclosure and mitigate further financial distress.

I have attached relevant financial documents to support my request. I kindly ask for your understanding and assistance during this challenging time.

Sincerely,
[Your Name]

Need Assistance Crafting Your Hardship Letter?

Writing a compelling hardship letter can be daunting, but you don't have to do it alone. Our team specializes in guiding Minnesota homeowners through the short sale process, including assistance with hardship letters.

📞 Contact us today for personalized support

---

Joe Houghton
Broker Associate | RE/MAX Results
Founder – Minnesota Property Group
📞 (763) 300-2702
🌐 www.mnpropertygroup.com