Since one of the most important instruments for getting a loan modification is a sample hardship letter then the borrower in question must study hardship letter samples to learn how to best construct one. For example, if your mortgage payments are behind then most banks and other lending institutions will appoint a loan mitigator to deal with you. You will then be requested to submit a package to this person for a loan modification application. The leading edge of this package is the financial hardship letter explaining how you ended up in this situation: loss of job, death in the family, sickness. Therefore the letter is an organized journal of both your financial and life problems that led you to be in arrears with your mortgage. It will also help the lender to see how to help you to get back on track. In order to write a good letter you should start with good hardship letter samples.
How it works is that the loan mitigator will read the loan modification package that includes the hardship letter, financial statements, bank account information, pay stubs, etc. But the most important part is the hardship letter because this is your sales pitch to the loan mitigator. And like all good sales pitches, you need a guide to follow and hardship letter samples are the best templates to follow.
Also, please don’t try to reach the loss mitigator by phone; they may not have the time to answer you. In addition, it may be confusing to both of you because you may not have all your facts sorted out yet. This is where an hardship letter sample, like the one below, really help you.
Sample Hardship Letter
Type of Letter: Loan Modification
1st/2nd/Heloc: 1st mortgage
Type of Hardship: Depleted savings, failed business
Property Category: Primary Residence
Lender: National City Mortgage
Loss Mitigation Department
National City Mortgage
3232 Newmark Drive
Miamisburg, OH 45342
To Whom It May Concern:
Re: Request for Loan Modification/Principal Reduction for property at ______________________.
Loan Number: _________
I’m looking to get a home loan modification to save my home from an impending foreclosure.
Hardship:
I’ve done well making my payments for the last couple of years, however, for the last _ months, as my cost of living has increased, my finances have been getting tighter and I have fallen behind on my mortgage. Due to this, I’ve had to dip into my savings and unfortunately I don’t have much left.
To increase my income, I attempted to start a business, but I was unsuccessful. It ended up costing me quite a bit of money and left a big hole in my cash reserves.
Also, my son was living with me and paying rent, but he recently left on a tour of duty to ___ with the _________.
Status of payments/ Ability to pay going forward:
I am currently _ months behind on my payments, however I’ve been approved for a trial loan modification beginning ______. I very much want to negotiate an affordable payment with you so that I can continue to stay in my home.
Unlike many people right now, I am fortunate enough to have a job and I am increasing my hours at work. Also, my other son is still living with me and paying rent. This will help me make my payments. Finally, I am finalizing an agreement with another renter and hope to have that documented and available to show you, soon.
Request:
Due to my dire financial situation, I ask that you work with me to lower my payments as much as possible.
I very much appreciate your consideration of our request, as I am serious about keeping my home. My contact information is below. Please let me know what further information you need and I will promptly provide it.
Thank you very much for your time.
Sincerely,
Enclosures:
1. IRS 4506-T
2. 2 months of recent paystubs
3. Most recent tax return
4. Monthly housing & loan obligations
