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Hardship Letters

What are the most important things you need to know about a hardship letter?

Who needs a hardship letter?

Homeowners who are facing foreclosure need a hardship letter as part of their documentation package when requesting a mortgage loan modification.

What information should I have in my hardship letter?

The homeowners contact info.
Reason for falling behind in mortgage payments.
An explanation of your current financial situation and ability to pay.
What type of reief are you seeking? Loan modification or short sale.
Any additional enclosures that the lender requests

Why would a lender accept a mortgage modification?

Lenders do not want the financial burden of a foreclosure. Lenders must pay tens of thousands of dollars in legal fees to initiate and proceed with a foreclosure action. If the lender acquires the home through foreclosure, they are stuck with the cost to insure, maintain, and advertise the home until it is sold.

How do I know if I need a financial hardship letter?

As soon a s you find that you may be unable to meet your financial obligations, you should contact your mortgage lender to let them know. They will tell you how to proceed from there. The lender may offer you a loan modification or you can request that your lender consider accepting a monthly sum that you can afford. In response, the lender may ask you to write a financial hartdship letter to explain your situation, along with proof income and other documentation..

Mortgage lenders are flexible when it comes to moetgage loan modifications. They do not want to pay the exhobitant cost of foreclosure. Your mortgage lender would rather accept lower payments or forgive part of the debt instead. A financial hardship letter is one way that you can document your side of the story to make your case for getting a loan modification agreement.