Home Buddies – Home Ownership Coach – Houston, Texas

How to Write A Hardship Letter to Mortgage Company

The hardship letter that you write to your lender gives you the chance to explain what has caused you to become delinquent with your mortgage. It may be the most difficult or embarrassing thing for you to do. You may feel intimidated, and not even know how to begin to open up and express what has happened in your life. It is an important supporting document, along with your financial worksheets, in negotiating your workout plan or short sale with the Loss Mitigation Department of your lender. It may be hand written or typed.

You don’t have to already be in foreclosure to submit a hardship letter to request a new workout plan. As soon as you are facing some new financial issues that were not in your control, contact your lender and be prepared to explain what has happened. Make sure these key things are in your letter:

• Begin with your name, property address, and your loan number.
• Give a valid reason of why you have fallen behind on your mortgage. Include dates if you can. A loss of job, mandatory reduction in pay, medical disability or illness, death of someone who contributed income, natural or man-made disaster, a decline in earnings if self employed, incarceration of spouse, separation, divorce, or some unavoidable increase in your monthly expenses. Whatever your reason may be, have some documentation to back it up with. Have proof available.
• Explain what you are doing to try to correct the situation, and when you will be able to resume your responsibilities.
• Be specific about what you need in the new workout plan. Are you currently on an ARM and need a fixed rate. Do you need a lower rate? Or a lower monthly payment? Do you just need a few months to get your finances adjusted so you will be able to resume your normal monthly payment?
• Thank them for the opportunity to explain yourself to them. Let them know that you are willing to cooperate.
• Include the best way that they can contact you. If they cannot contact you within a reasonable amount of time, they may choose to close your file and not proceed any further.

We have already posted some example hardship letters on this site (Example Hardship Letter 1, Example Hardship Letter 2, Example Hardship Letter 3). Take a glance at those and get a good feel of how you want to write your hardship letter. And contact us if you have any questions or need any help. Good luck.

Barbara Partaka
Home-Buddies