Financial hardship letters give homeowners the opportunity to provide lenders with details of events that led to financial difficulties. You should mention unforeseen circumstances and show that you have done everything you could to prevent foreclosure.
This letter acts much like an outline or biography of your current issues that are affecting your ability to meet your financial obligations, and by this we mean not being able to afford your mortgage. Be specific, but limit it to a one or two paragraphs.
This plan will save millions of homeowners hundreds of dollars per month through refinancing and mortgage modification.
How many mortgage payments were missed as a result of the financial hardship? The letter should cite a reasonable specific hardship, like a lost job, illness or reduced income.
Here is how it works If you attempted to sell your home unsuccessfully, include a copy of the listing agreement. Hardship Letter Writing Secrets Publisher: Despite my efforts, I was not able to find additional employment until last month. As you are aware, we are currently 5 months behind on our mortgage payments.
Examples of valid hardships include: The more time passes after the hardship is over, the more savings will matter as far as documenting your ability to resume on time payments. They saved my home from forclosure!! Many investors no longer use hardship letters as part of their approval process for a very obvious reason.
Things To Include In order for your letter to be most effective, it should be written according to the following guidelines: Specifically illustrate the time and severity of the hardship Provide detailed feedback as to when the hardship occurred and how much it affected you.
Make sure that you send only copies, never the original documents. You will likely have less options the more time passes. The hardship letter allows mortgage lenders to evaluate to some extent the cause of mortgage delinquency for a homeowner.
Simon Volkov Learning how to write a loan modification hardship letter can provide borrowers with much needed mortgage relief. Most mortgages are part of huge investor pools that are subject to generalized methods of deviation in the case of default.
And be gracious; the person reading the letter reads many of them every day, and a simple "thank you for reading this letter" may get you further than you think.
This may help homeowners in the quest for loan modification approval. Luckily for homeowners, they have been approved to offer President Obama's "Making Home Affordable" plan to struggling homeowners.
We have certified Foreclosure Prevention and Financial Counselors here to help you take action! The person reading the letter needs to feel what you are feeling, so write from the heart.Subject: Find a Loan modification letter / hardship letter Mon Jan 26, am If you have a financial problem and are unable to make timely payments on the debt as per the terms and conditions of the loan agreement, you can send a loan modification letter to the creditor.
a sample hardship letter and some pointers about what information to include in your letter, if you need to write the letter yourself. It is better to try this on your own than to do nothing.
When you ask for a loan workout or a loan modification process, the lender will ask for a hardship letter. This is a type of written explanation about an 'event' that caused you to fall behind on your mortgage.
When writing a hardship letter, borrowers should refrain from expressing personal problems -- such as a history of drug or alcohol abuse -- as it's not necessarily relevant to your request.
Keep in mind that all you need to convince a servicer of is that your request -- whether for a forbearance, deed in lieu of foreclosure or mortgage modification -- is necessary to allow you to honor the terms of your mortgage. Oct 03, · We are writing this letter to explain the extreme financial hardship it will be for our family when our loan adjusts from a % interest rate to a % interest rate in August This interest rate adjustment will cause our payment to dramatically increase in the amount of $ per month on top of our current payment of $ increasing the payment to $ per month.
Writing an effective letter stating your financial hardships, will greatly increase your odds for mortgage refinancing or modification approval.
A lot of homeowners have been denied a loan modification simply due to a poorly written letter of hardship.Download