Hardship Financial Letter
When facing a home foreclosure it is hard to come to grips with a lot of facts that could help you. For one thing lenders do not relish the burden of a foreclosure. Besides the loss of income from non-payment lenders must pay many thousands of dollars in legal fees to put forth a foreclosure action. Not only that lenders are not in the real estate business so if the lending company gets a house through a foreclosure it is hit with many more fees: insurance, maintenance, security and advertising until someone comes along and buys it. So if a person owing the lender writes a good hardship financial letter then the lender can work out a loan modification to keep the person in their home.
One of the important instruments of a loan modification is the hardship financial letter. If your mortgage account in arrears most banks and other lending institutions will request one of these letters when you submit your application for a loan modification. Basically, the hardship letter is a documented account of both the financial and life problems that caused your mortgage to be in arrears. Not only that it will give the lender what you see as helping your situation and, in addition, what part you will play in catching up with your mortgage.
The lender’s representative is usually a loan mitigator. This person will receive and read the loan modification kit that includes the hardship financial letter. Other documents will include financial statements, pay stubs, bank account information, etc. However, the most important item is the letter because this personally introduces you to the person who is going to look at helping you out.
The best way to convey the appropriate facts to the loss mitigator is through the hardship financial letter. Do not phone because all this information has to be documented for further study. And a phone call may be confusing whereas a hardship financial letter is a concise outline of what the loss mitigator has to know.
Here is a list of pertinent items in a hardship financial letter:
1. Adjustable Rate Mortgage Reset
3. Change of income downward
4. Family illness
5. Medical bills
6. Loss of job
7. A relocation for work
8. Failure of a business
9. Death of a spouse or that of a household contributor
11. Military assignment
12. Damage to home fire or natural causes
13. Other hardship items
The hardship financial letter is not only important it has to be written carefully. For this you should get an example of a hardship financial letter and follow it. In this way you will know that you are covering all the points. And you don’t want your loan modification tied up because you missed something out.
Get on the train to financial recovery by getting a sample hardship financial letter to follow.