• Loss of employment
  • Health related issues
  • Decrease in earnings
  • Active military deployment
  • Death in the family
  • Major property damage
  • Temporary earnings reduction
  • Denied for a refinance
  • Permanent disability
  • Temporary disability
  • Retirement or fixed income
  • Incarceration
  • Major depressive episode or other psychiatric disorder

One of the more important things you’ll have to provide your lender or servicer during a loan modification or short sale is a hardship letter. A hardship letter is basically an explanation of what’s happened to make you unable to make your payment.

Think of this letter as an outline or even a biography of what’s going on in your life that’s causing you to not be able to meet your financial obligations.

There are far too many hardships that can qualify you for a short sale or for a loan modification to possibly list. We have included a long list of the most typical hardships that qualify people for a loan modification or a short sale.

Something to keep in mind when you’re writing your letter and explaining your hardship – these letters will typically be reviewed by overworked, backlogged, $12 an hour loss mitigation employees. So keep be sure to keep it short and to the point. I’d say no more than one to two pages – that should be more than enough to explain why it’s important for you to get you point across.

Now it’s time for you to write your letter – hopefully this page gave you some helpful ideas. To the right please click on any of the hardship topics for sample hardship letters. With any luck this will help you further. Please contact me if you have any ideas how I can make this more helpful.

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