sample-hardship-letter

The steps outlined will ensure you begin the loan modification process successfully. The first step is determining what events can be used as legitimate reasons of hardship, 16 of which are listed. The next step is an often overlooked one and that is, to contact your lender and get the name and address of someone you can directly send the letter to, getting your case to the top of the pile! Finally detailed instructions on how to write a hardship letter is provided, including a sample hardship letter that you can easily use to start the loan modification process today.

Determine what events have happened in your life that have caused you to fall behind on your mortgage payment. These unfortunate events can include:

1. Death/Illness of Mortgagor
2. Death of a Family Member
3.Marital Difficulties
4. Property Problems
5. Reduction of Income
6. Excessive Obligations
7. Employment Transfer
8. Unemployment
9. Inability to Rent
10. Inability to Sell
11. Military Service
12. Business Failure
13. Reduction of Income
14. Fraud
15. Payment Adjustment
16. Payment Dispute

Once you identify what has caused you to fall behind on your mortgage, determine what steps you have taken or are taking to alleviate the hardship. For more information on if you qualify for a loan modification and should pursue writing a hardship letter visit Complete Loan Modification Kit

Now that you have identified what has caused the hardship and the steps you are taking to alleviate it. It is time to determine who the letter will be sent to, this sounds like an obvious question however it is important to ensure that you understand who the letter is going to and their incentives for helping you.

Find your mortgage paperwork and determine who holds the mortgage, once you know that, call the lender to determine who, where and what position the person holds that you should send the letter to. Being able to have a name and number of the person responsible for your case will allow your hardship letter to stand out and be at a huge advantage over all the other people pursuing a loan modification.

Finally it is time to write the letter. First some insider tips you must follow to write a successful hardship letter:

1. State the steps you have taken to alleviate the hardship

2. Describe the hardship without any excuses

3. Always be short, concise and respectful

4. Ensure they know just how willing you are to work together to resolve the situation

Here is the sample hardship letter, fill in your information from steps 1 and 2:

Name of Bank/company
Name of Contact
Address
Date
Loan Number:

To Whom It May Concern, (or the name of contact)

I am writing to inform you of my unfortunate set of circumstances that have caused my family to become delinquent on our mortgage. We are looking forward to working with you to resolve the problem and want you to know that our priority is to keep our home. We are certain making a small adjustment to our loan, as a result of our unfortunate circumstances, will be in both of our best interests.

(in this paragraph explain why you have fallen behind)
The events we are referring to that have caused us to fall behind are (describe your reason here, remember brief and no excuses) As a result of this unfortunate situation we have taken these steps (describe the steps taken such as selling your car or luxury goods), however we are still unable to meet the mortgage payment. We would like to be able to pay the full amount that we owe, however, at this time we need some temporary help in doing so.

Since we have been proactive and taken steps to make our situation better we have (insert positive results here, decreased costs etc.). Due to our improved and improving situation we are confident a loan modification would benefit us both. We are very much looking forward to working together to decrease the delinquent amount, temporarily lower the rate and ultimately keep our word to your company and pay off the mortgage.

We look forward to working with you, please send your loan modification package and all relevant information so that we continue the process of becoming right side up on our mortgage.

Sincerely,
Mr. & Mrs. ___________________
Signature_____________________
Loan # ______________________
Address______________________
Phone________________________

After successfully writing the hardship letter and sending it off you must ensure you always follow up. Be persistent if your lender doesn't return your calls keep calling.

Now that the communication channel is open

Now that the communication channel is open you want to make certain you have all the documents and financial forms ready so that when your lender does contact you there is no wasted time. Time is not on your side! So to prepare the all the documents and financial statements you need, us a Loan Modification Kit . This kit will provide you with all the forms necessary to complete a loan modification, simple to follow guide, document checklist to ensure you have everything and templates for financial statements.