A Hardship letter is something most Mortgage Companies will require to consider you for a “Work Out”. This is your
opportunity to appeal to them to give you another chance. This should not be used to complain to what they have
done or not done to make your situation worse. This letter must be honest and represent the facts clearly. It must
prove to them that the situation that caused you to fall behind was temporary and you are now in a position to make
your payments on time. You must also have a legitimate excuse for falling behind… financial problems in itself
would not be an adequate excuse. Loss of a job, death in the family or illness would be an acceptable reason to
fall behind on your Mortgage temporarily. Here is one example of a letter that the Mortgage Company is looking for.
Please allow us to get you the foreclosure advice you are seeking. We can stop foreclosure on your home.
Name: (Your Name)
Address: (Your Address)
Mortgage Co: (Mort. Co.) Loan No: (your Loan Number)
I/We, (Your Name), are requesting that you review my financial situation to see if I/We qualify for any workout
option.
I/We are having problems making my monthly payments because of financial difficulties created by (circle what
applies):
Unemployment
Reduced Income
Divorce
Separation
Medical Bills
Too Much Debt
Death of my Spouse
Death of a family member
Payment Increase
Business Failure
Job Relocation
Illness
Damage to Property
Military Service
Incarceration
Other (Please Specify)
This difficulty or situation happened on or about this date ??????.
I/We believe that my/our situation is (circle one) Temporary / Permanent
This is a brief account of the situation is as follows: (explain your situation… tell them you feel you can now afford
your payments)
I/We, (your name), state the information provided above to be true and correct to the best of my/our knowledge.
Borrower’s Signature
Date
Co-Borrower’s Signature
Facing problems after taking out a home mortgage loan is very common in the country. Incidence of mortgage defaults is also very frequent. However, you must put in serious efforts to avoid foreclosure. Anyways, you must explain your financial hardship to your lender in the form of a hardship letter. In the letter you must include the reasons behind you making defaults, steps taken by you to improve your situation and the the possible workout plan that you are interested in. After analyzing your case, the lender decides whether you are eligible for mortgage restructuring program such as mortgage modification, short sale etc.
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