How to Write Hardship Letters That Work

Posted on December 16th, 2008 by saman

If you have not been up to date with your monthly mortgage payments, then you will not have to wait long until the payment is demanded in a warning. If ignored too long, the lender will eventually start to threaten with the starting of a foreclosure process. This means that you will lose your home and your credit will be ruined for years afterwards. It is in your best interest to avoid this problem and the only way you can do that is to keep in contact with the lender and let them know what is going on and why you are behind. This can be done in a hardship letter and if done right it usually works, because the lender is not interested in taking away your home since it actually costs them more money and wastes their time to have it in the first place.

The basics that belong in a hardship letter

A hardship letter is like many other formal communications with companies, just that it is aimed towards a mortgage company. A hardship letter is essential in avoided a full foreclosure process, because many companies that receive these letters will actually work out a plan with the homeowner so that they can keep their house and keep up with payments, even if it means lowering them temporarily. They can do just about anything so it is up to you to write that hardship letter correctly. Some information is absolutely a must, such as:

- Your name, address and contact number

- Your mortgage company’s name and your case number, as well as loan number

- What you are requesting of the lender, such as reduced or postponed payments

- Reasons why you are not presently able to make the monthly mortgage payments, such as illness, accident, death in the family or unemployment

- Whether or not you have plans or a way out of the problem and if it is a temporary or permanent situation

- Explanation of how the entire problem happened in the first place. This is basically a summary of what led up to the missed payments

- Date and signatures of all parties involved with the mortgage loan

The sooner that you write the hardship letter and send it to the mortgage company the better things will work out for you. They are more accepting of people who do not just ignore the problem, but instead seek a solution and do the best they can to get through the situation successfully. Showing the willingness to cooperate with the lender will already work in your favor.

What else is important?

It is also important to keep the mortgage lender up to date with your situation. If you have sent a hardship letter and then just ignore what they have to say, then they might decide to ignore you and just foreclose even though it is not in their best interest. You should also keep in mind that you should include as much relevant information as possible. If you have applied for new jobs or already have one, then that should be included in the hardship letter since it will positively influence the decision of turning your house in a foreclosure for sale. You should also keep in mind that it should be written legibly and in proper English. There are many sample hardship letters that can be found on the internet which can give you a guideline to follow.