Short Sale Hardship Letter Example - Payment in Full Request

Sep 15, 2026

Uploaded by Aran

Short Sale Hardship Letter Example requests lender assistance to avoid foreclosure by proposing a short sale/payment-in-full arrangement for a residential property at 123 Main Street. The letter explains the borrower’s financial hardship after slow sales in an antique resale business, resulting in inability to sustain a near-$2,000 monthly mortgage. It describes attempts to sell the home starting at $210,000 and reducing to $170,000 without offers, and states the borrower is working with a real estate agent. The writer emphasizes preserving credit and seeking foreclosure avoidance, referencing attorney guidance to file bankruptcy while preferring this alternative.

LanguageEnglish

CategoryLetters

FormatPDF

Pages2

Reading Time1 min

AccessFree to download

Short Sale Hardship Letter Example - Payment in Full Request

Property and hardship context

Listing attempts and current plan with agent

Request for lender assistance and contact

Short Sale Hardship Letter Example Lender Name Lender Address Today’s Date Re: Hardship Letter/Short Sale for 123 Main Street, City, State 12345 To Whom It May Concern: I purchased the property at 123 Main Street in March 2006. At that time, I had just started my own antique resale business, which had great promise for generating profits capable of supporting my mortgage. Unfortunately, sales were slow, which I attribute to great declines in tourism after gas prices skyrocketed. I ran out of money, and began working as a waiter to make ends meet. At the same time I was redoubling my efforts in my own business, but to no avail. After struggling for months to make my expensive mortgage payments, I had no choice but to put my house on the market. In August of 2006, I put my home up for sale by owner at an original listing price of $210,000 . The only people to look at the house ran when they saw the extensive damage to the pool and the severe water damage from a leaking roof that had long needed a replacement. I lowered the price, but still had no takers. Over the next couple of months I lowered the home price three times, finally settling at $170,000 . This price was the lowest I could list the house at and still afford real estate agent commissions to be deducted, although it leaves me with no profit. The home still has no offers. I am working with a real estate agent now, who is listing my house and promises to push it to get it sold quickly. I believe that using an actual agent will ensure that the home sells promptly. I love my home, but I also understand that, at this point, I cannot afford it. I am a single parent, now working as a waiter to survive. My financial situation cannot sustain a home mortgage of nearly $2,000 per month. I would like nothing more than to sell my home, avoid foreclosure, and salvage my credit. This is my main concern. I know that a foreclosure on my record will affect me for years to come. I would ask that you please assist me in avoiding this. Please accept this offer as payment in full. My attorney has advised me to file bankruptcy, but I prefer to avoid further destruction of my credit. I just want to move on and start over. I deeply appreciate your help and understanding in this matter. If you have any questions, or need anything further from me, please contact me personally. Kindest regards, Home Owner Name

FAQs

What is the purpose of the hardship letter?

To request lender assistance for a short sale/payment-in-full arrangement and to avoid foreclosure while protecting the borrower’s credit.

Why is the borrower unable to keep the property?

The borrower describes financial hardship caused by slow business sales and subsequent inability to afford mortgage payments of nearly $2,000 per month.

What actions has the borrower taken to sell the home?

The home was listed for sale by owner starting at $210,000 in 2006, then the price was reduced three times to $170,000 without receiving offers; the borrower is now working with a real estate agent to sell it quickly.

Sep 15, 2026

Uploaded by Aran