The first step in helping a borrower with short sale of their home or property is recommending and organizing the short sale hardship letter to the lenders.
Lenders like to see numbers, so such hardship letter shouldn’t be a sob story about borrower’s difficulties. 
The hardship letter should be factual description of a financial situation that leads to bankruptcy or a foreclosure on their home.
The lender should be convinced that its only other option is foreclosure and that it (lender) can see the numbers showing that short sale is better alternative.
It costs a lender an average of about $50,000 for foreclosure processing.
After foreclosures, lenders are also required to have reserves to be held as back up non-performing loans. Lenders must then tie up resources for that, which they don’t like. Lenders like alternatives to foreclosure.
The borrower should write the hardship letter in her or his own words, showing the picture of negative financial condition, backing up claims to hardship with documents, employment records, pay stubs, medical bills, job layoff letters, credit card statements, income tax records for the past two years, etc.
This hardship letter should clearly show that the borrower needs a short sale and is otherwise headed for foreclosure or bankruptcy.
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This is for information only and not the providing of legal or tax services. You should consult with an experienced attorney prior to making final decisions about short selling your property.
Harrison K. Long - solutions for real estate and business - REALTOR, GRI, broker associate, Coldwell Banker Residential Brokerage - 949-854-7747 (phone) – ExploreProperties@gmail.com (email) - CA DRE 01410855 – attorney member of the California state bar association #69137
