Several different hardships may have caused you to fall behind on your mortgage payments, including financial hardship and medical hardships. The most common hardship is due to lack of income due to loss of job or loss of business.

The format below is the most commonly used but not necessarily the only one accepted by the lenders: 

Borrowers Name
Property Address                                                                                               Date: January 1, 2023
City, State, and Zip Code
Loan number

We, Joe and Mary Smith, the borrowers of the above-referenced property, regret to inform you that we can no longer afford to make the payments on our mortgage referenced above.

I am in the construction business and as a residential house framer I was making good money at the time I purchased my home. I unexpectedly experimented a substantial decrease in my working hours due to a downturn in residential construction. My income has decreased by almost half of what I used to make five years ago when I purchased my home. My wife has been unable to find work and with my only income, we only have enough to pay for the basic necessities such as food, utilities, and clothing.

I can no longer afford to keep this home and I would like your assistance in initiating a short sale if possible.

I have contacted my own real estate agent and he has suggested the fair market value of this property and I would like to put it up for sale at that price. Please let me know if my property qualifies for a short sale so I can start marketing the property with the assistance of my real estate agent.

Sincerely,

______________________________ and ______________________________
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