How to write a convincing hardship letter for a mortgage modification

Provide a specific date or range of dates.

financial hardship letter example

Your explanation should be clear, honest, and contain just the right amount of detail. For example, you might not have an injury that has fully healed.

Hardship letter due to illness sample

We believe that we are through the worst of these difficult times as I am now fully employed and we only have 2 payments left on our medical bills. You must convince your lender that you have no other means of mortgage assistance, and that you will stay on track if they grant your request. Use subsequent paragraphs to explain your case in detail. A financial hardship letter should explain to your lender why you are in financial distress and your capacity to resolve it. We appreciate your time and willingness to help us. Now that I am healed from my injury and ready to return to work, I believe I could resume regular payments if you would make adjustments to our loan. Keep your objectives in mind Remember to focus on the reasons you are writing this hardship letter.

The way you write it can literally spell the difference between keeping and losing your home. Sincerely, Last edited by a moderator: Jul 20, Our credit coaches are experienced in writing letters to creditors for multiple types of hardships, including life events, credit card, and debt.

loan modification request letter

Is the hardship temporary or permanent? You need to prove that you experienced a genuine hardship and that it compromised your ability to pay. Sample hardship letter:.

How to write a convincing hardship letter for a mortgage modification

Payment shock, as in a bump in the interest rate on an adjustable-rate mortgage. What are you doing to address the root cause s of the hardship if you have any control over them and recover your financial footing? We would appreciate the opportunity to work out a loan modification where our interest rate will be frozen at the 7. As a matter of fact, a monthly increase of this amount will ruin us financially and within a few short months of this adjustment we will surely fall into foreclosure as we will not be able to afford the monthly payment. Perhaps more importantly, lenders want to know how you will sustain your payments going forward, if they decide to modify your loan. Your explanation should be clear, honest, and contain just the right amount of detail. No matter how unfair your situation might be, an effort to deflect blame or scapegoat in your hardship letter will be a red flag for the lender. Following are the questions your hardship letter needs to answer: What event or series of events caused the financial hardship that has made your monthly mortgage payments unaffordable? However, these last 8 months have found us in difficult times. When did the hardship occur? While we cannot immediately pay what we owe you, we do intent to pay the full amount. Your foreclosure attorney can help you tighten up the wording. Looking for help with a troubled mortgage or foreclosure?
Rated 8/10 based on 39 review
Download
Examples of a Hardship Letter