Redding CA Short Sale Process: What is a Hardship Letter

Real Estate Agent with Coldwell Banker C&C Properties

For years we have been representing clients in Redding CA who are at risk of losing their home. A common question from distressed property owners is "What is a Hardship Letter"?

If you are a homeowner looking for your home loan to be modified, one of your initial steps is the writing of a hardship letter. This letter goes to your lending institution. It explains your financial hardship, what led up to the hardship, and how a modification will help you out of it. It is used to explain to the lender the reasons for your need to do a short sale. Reasons such as divorce, job loss, medical issues, etc. can and should be included. The hardship letter is typically one page in length.

There are several templates you can downland on the Internet, some will cost you money to download, but most of them are free. Below is an example of a short-sale hardship letter:

Today's Date

Mortgage Servicer's (Lender) Name
Loan Number

To Whom It May Concern:

Body Text: Explain your hardship in detail and include information that justifies why you can no longer afford to keep your house and why you nust do a short sale. We recommend you keep the tone of your letter professional and to the point.

Reasons borrowers have given as their hardship: Divorce | Reduced Income | Excessive Medical Bills | Job Relocation | Marital Separation | Jail | Military Duty | Monthly Payment went up due to Adjustable Rate Mortgage | Failed Business | Job Loss | Illness | Natural Disasters have Damaged Property

Borrower(s) Signature  & Date

If you need assistance with your Hardship letter, speak with an experienced Realtor who specializes in Short Sales.


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Chris and Maria Jeantet, "the real estate couple"


CALL Chris at (530) 510-0810 or Maria at (530)510-8880






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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I've done this a few times and helped borrowers with the hardship matter how badly you feel about your lender and the loan....never blame the bank. Just explain your situation clearly. Don't even blame anyone. Just state the facts.

Apr 09, 2011 07:37 PM #1
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Redding CA Real Estate Couple
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