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Hardship Letters
A financial hardship letter is used for debt settlement or to convince your mortgage lender to accept a mortgage loan modification agreement You must prove to your lender that the situation that caused you to fall behind on your mortgage payments was temporary and you are now able to make your mortgage payments on time. Do You Need Help With a Hardship Letter? Are you behind in mortgage payments? Click here to talk to an expert about options to save your home from foreclosure Click here to talk to an expert about options to save your home from foreclosure |
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Hardship Letter Deed In Lieu Hardship Letters Sample Hardship Letters |
Sample Hardship Letter A financial hardship letter is used to help convince your mortgage lender to accept a mortgage loan modification agreement. You must prove to your lender that the situation that caused you to fall behind on your mortgage payments was temporary and you are now able to make your mortgage payments on time. Loss of a job, death in the family or an illness would be an acceptable reason to fall behind on your Mortgage temporarily. Some common situations that cause home owners to fall behind in mortgage payments are: Job Loss High Medical Bills Reduced Income Divorce or Separation Too Much Debt Death of my Spouse Death of a Family Member Damage to Property Military Service Business Failure Job Relocation Illness Incarceration Payment Increase (from adjustable rate mortgage) Here is one example of a Financial Hardship Letter that a Mortgage Company looks for. Name: Address: Mortgage Company: Loan Number: To Whom It May Concern: I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. The main reason that caused us to have a hardship and to be late is (insert reason here). This occurred on or about (insert date of occurrence here). Our situation has got better because (reason here). We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can avoid foreclosure and continued delinquency. We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on. Sincerely and Respectfully, Borrower’s Signature Date Co-Borrower’s Signature Date Financial Hardship Letters Stop Mortgage Foreclosure What is a Financial Hardship Letter? A financial hardship letter is a letter written to a mortgage company that is used to help convince the mortgage lender to stop foreclosure and accept a loan modification or short sale. Many mortgage lenders require a financial hardship letter along with other documentation when considering alternative ways to avoid having to foreclose on a home. What Information Should I Include In A Financial Hardship Letter? There is no specific format for a hardship letter, but a well written hardship letter must contain the following information: 1. Contact information for the homeowner 2. The type of foreclosure prevention remedy the homeowner is looking for 3. Explain the hardship that caused the mortgage default 4. Explain the homeowners current situation and financial status 5. Homeowner's loan modification or short sale proposal (i.e sell the home for $50,000 or accept monthly payments of $500 per month) 6. Enclosures - Your financial hardship letter should include a list of all supporting or required documentation that you are sending to your mortgage lender. What are Acceptable Reasons For Falling Behind on My Mortgage? There are acceptable reasons for falling behind on mortgage payments. Among them are Job Loss, High Medical Bills, Reduced Income, Divorce or Separation, Too Much Debt, Death of my Spouse, Death of a Family Member, Damage to Property, Military Service, Business Failure, Job Relocation, Illness, Incarceration, Payment Increase (from adjustable rate mortgage) A hardship letter should summarize what happened that caused the homeowner to fall behind in payments, state what the homeowner has done to correct the problem, and what type of foreclosure prevention remedy the homeowner is seeking (loan modification or short sale). If you are requesting a loan modification or short sale, your mortgage lender may require you to send pay stubs, tax returns, monthly budget of income and expenses, financial statement with a list of assets and liabilities, Profit & Loss Statement from a business, checking account statements, brokerage account statements. If you are requesting a short sale, your mortgage lender may require you to send a copy of the real estate documents. Sample Hardship Letter: Borrower's Name: Address: Phone#: Loan #: To Whom It May Concern: I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. The main reason that caused us to have a hardship and to be late is (insert reason here). This occurred on or about (insert date of occurrence here). Our situation has got better because (reason here). We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can avoid foreclosure and continued delinquency. We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on. Sincerely, Borrower’s Signature Date |