Hardship Letter Example

A key part of any loan modification is the hardship letter. The lender will request one from you in any dealings about helping with an overdue mortgage. A hardship letter is a written story as to the event or events that caused you to default on your mortgage. It can also be vital in helping you to stave off the foreclosure of your home.

The hardship letter is basically a biography of the chain of events that molded your financial situation. It is a “tell all” of how, for example, your loss of a job or some other financial incident has caused this problem. In other words it will convey to the loss mitigator, the lender’s representative, how you go into the problem and what you want the lender to do to help you. It also will state to the lender what you are willing to do to help out the process.

The best way to write a letter of this kind is by following an example hardship letter. This is prudent because not all of us are good writers and so we need all the help we can get. In addition an example of a hardship letter can give a point-by-point outline of what we need to convey to the loss mitigator. Because they are busy and they don’t want you life history. It has to be a concise story of events.

Here is a list of hardships that lenders consider during the workout process:

1. Adjustable Rate Mortgage Reset
2. An illness in the family
3. Job loss
4. Income reduction
5. Business failure
6. Job relocation
7. Death of spouse or contributing family member
8. Death
9. Incarceration
10. A divorce
11. Military duty
12. Income reduction
13. Medical bills
14. Damage due to natural disaster or fire
15. Anything else that would be considered a hardship

Keep in mind that your hardship letter is one piece of the loan modification process but a large part of the process in helping to avoid foreclosure. For help to write the letter it is best to get an example of hardship letter. By following an example of a hardship letter you will be on your way to a loan modification and financial recovery.