Writing the Hardship Letter
by Lisa Phillips
December 2009
by Lisa Phillips
December 2009
A hardship letter will be required when requesting a loan
modification or loan workout from a mortgage lender. The hardship
letter is a written explanation of an event which caused you to
default on your mortgage.
The hardship letter should be compelling, yet concise and to the
point. Keep it to 1 or 2 pages, at the very maximum. Although you
may be tempted, now is not the time to tell your lender how awful
they may be and how horribly you have been treated.
It is your opportunity to explain an unfortunate event or events which
caused you to fall behind, explain your current financial situation
which details how you will prevent falling behind again and your
desire to keep your home. It is basically your opportunity to appeal
to your lender to give you a chance to keep your home.
It is always a good idea to explain how you have cut back and
budgeted in order to now afford your mortgage payment. Your goal
is to prove the situation that caused the default was temporary and
you are now in a position to make timely mortgage payments. Make
certain you include appropriate dates in your letter explaining when
the event occurred which caused you to fall behind and when the
event ended.
Reasons for Falling Behind
modification or loan workout from a mortgage lender. The hardship
letter is a written explanation of an event which caused you to
default on your mortgage.
The hardship letter should be compelling, yet concise and to the
point. Keep it to 1 or 2 pages, at the very maximum. Although you
may be tempted, now is not the time to tell your lender how awful
they may be and how horribly you have been treated.
It is your opportunity to explain an unfortunate event or events which
caused you to fall behind, explain your current financial situation
which details how you will prevent falling behind again and your
desire to keep your home. It is basically your opportunity to appeal
to your lender to give you a chance to keep your home.
It is always a good idea to explain how you have cut back and
budgeted in order to now afford your mortgage payment. Your goal
is to prove the situation that caused the default was temporary and
you are now in a position to make timely mortgage payments. Make
certain you include appropriate dates in your letter explaining when
the event occurred which caused you to fall behind and when the
event ended.
Reasons for Falling Behind
- Loss of Job
- Under-Employment (Hours cut back)
- Reduced Income
- Illness
- Medical Bills
- Divorce or Separation
- Excessive Debt
- Death of a Spouse
- Death of a family member
- Mortgage Payment Increase
- Business Failure
- Job Relocation
- Damage to Property
- Military Service
- Increased Financial Responsibility (i.e. taking care of a sick or
elderly loved one)
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Related Topics:
- FHA Mortgage Loans, Basic Features and Loan Limits
- The Benefits of Fixed Rate Mortgages
- VA Homes Loans
- Hard Money Mortgage Loans
- Adjustable Rate Mortgage Loans
- Interest only Mortgage Loans
- Benefits of making Bi-Weekly Mortgage Payments
- Options to Foreclosure
- Stop Foreclosure with Forbearance
- How to Request a Mortgage Loan Modification
- Downpayment Assistance Listed by State
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