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?


Sample Hardship Letter
You must prove to your lender that you had a legitimate reason for falling behind on your mortgage payments. 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
Payment Increase (from adjustable rate mortgage)

Here is one example of the type of Financial Hardship Letter that a Mortgage Company looks for.



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


Co-Borrower’s Signature


A Well-Written Hardship Letter Is Pivotal For Short Sale Success
By Chuck Lunsford 

Few people purposely wish to suffer through the pain and humiliation of losing a home through foreclosure. There are many alternatives to bankruptcy and stopping home foreclosure for owners unable to keep their mortgage payments current. One such option is known as a "short sale." It means a lender is willing to accept less than the total amount owed on the loan. One key element involved in the short sale process is the hardship letter.

Most mortgage companies or lenders require the hardship letter pursuant to a short sale. The homeowner should not waste this valuable opportunity to appeal to the lender for another chance. It is also prudent not to waste time and engage in finger-pointing as it will only make your already tenuous situation worse, and lender may well deny your request for a short sale. In the hardship letter just present the facts clearly and above all else be honest. The hardship letter must be able to prove the situation that caused you to fall behind was temporary and you are now in a position to make your payments on time. The excuse for falling behind must be legitimate and provable. Situations such as job loss, prolonged personal illness, or a death in the family are all acceptable reasons to fall behind on your mortgage payments.

Who is responsible for writing the hardship letter to creditors?

A homeowner may write the hardship letter themselves, hire someone, or get help from a real estate investor if one is involved. The real estate investor can offer valuable experience and samples of hardship letters for the homeowner to create their letter. Ultimately it is the homeowner who is responsible for the letter, its content and accuracy of information.

Hardship letter writing tips.

You are going to have to get personal in your hardship letter. At this point in the process the homeowner should be fairly immune to any embarrassment involved with telling their story. This is also the homeowner's opportunity to implore upon the lender to accept the smaller amount from the short sale. A well-written hardship letter is moving and personal and contains full back up proofs of the hardship.

The more time, and the better the hardship letter is composed, the easier the short sale is going to be. The best hardship letter will convince the creditors that the homeowner's situation is genuinely distressing and the lender would be better off accepting the lesser amount than pursuing a foreclosure.

SaveMeFromForeclosure.com is a forerunner in the foreclosure prevention service industry, helping people in stopping foreclosure on their home. Our experience, along with our passion to help homeowners through this challenging time, set us apart from the competition. We only succeed if you are able to avoid foreclosure using the short sale option with our assistance. Visit our website or call us at 1-888-472-8380 for a no-obligation consultation.

Article Source: http://EzineArticles.com/?expert=Chuck_Lunsford

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