As you prepare your short sale package, you want to include all the information that might convince the person reviewing it to say “Yes” to your application. This means being open and honest about your money situation, job status, divorce, and much more. Having a big stack of medical bills is one of those financial catastrophes that might qualify you for a short sale. Unmanageable, unexpected medical costs are definitely something to mention in general terms in your hardship letter.

However, you should never send any medical documents with your package. You might think that “proving” you or a family member have a serious health condition means you need to send along a doctor’s note or other documentation of the illness. That isn’t the case. Personal medical information is carefully protected by HIPAA to limit discrimination based on health status. Lenders are prohibited by law from asking for or using such information in any way to determine your eligibility for any type of credit, loan modification, or short sale approval. They will simply discard any private medical documents you send without taking them into account.