How to Write a Hardship Letter

Author: Lori Barkus

WHAT IS YOUR HARDSHIP

It is not enough to say that you cannot pay your mortgage. Your lender knows that. It is also not enough to say that you have fallen on hard times or that unexpected events have happened. It also does not matter that you think it is unfair that you ended up with a payment you cannot afford. The fact is that you are asking your lender, whom you owe money, to change the terms of your paying it back. In order to for the lender to even consider doing what you are asking, you need to have a specific reason why you were unable to make your mortgage payments. Specific reasons include: loss of job or reduction in income, death of spouse or co-borrower, divorce, illness or medical bills, and, in some cases, an adjustable rate mortgage reset.

STEPS TAKEN TO ADDRESS HARDSHIP

It is not enough to tell your lender that you have hardship. You need to state specifically what you have done in response to the hardship. This shows the lender that you are serious and that you are prepared to fix the situation. For example, if you lost your job, you need to tell the lender what you have done to obtain new employment. You should also provide specific information regarding attempts to refinance your home.

YOUR PLAN OF ACTION

Your lender needs to know when it will be paid. The last step is to tell your lender what you plan to do to bring your payment current. You will need a specific payment plan and to tell your lender that, if your monthly mortgage payment is reduced to a certain amount, that you will be able to pay that amount.

BACKUP DOCUMENTATION

You need to submit documents proving what you say in your letter. If you lost your job, provide a copy of your application for unemployment or termination letter. Show proof that you are able to pay what you are asking the lender to accept.

Keep in mind that your letter is one of tens of thousands placed on the desk of a loan officer. Keep it brief and to the point. And be prepared to follow up regularly until you receive a response.

South Florida foreclosure defense lawyer Lori Barkus helps Florida homeowners avoid foreclosure. If you are a Florida homeowner facing foreclosure, visit our website for more information or call our office to schedule a free initial consultation.

http://www.foreclosuredefensebroward.com

954 349 7988

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