Factors to Consider When Writing a Sample Hardship Letter
A hardship letter is a document that explains why you are unable to pay your mortgage in an attempt to prevent a foreclosure. In case your situation is the same, the bank will permit you to continue staying in your home. You may qualify for a hardship if you are unemployed, your income is reduced or because of illness. In case you are unable to pay your mortgage, the bank may modify your current mortgage to reduce their interest rates or sell your house in a short sale. It is necessary for you to let the bank know of all your hardships in your letter.
It is quite hard to put down your issues on paper. You should never describe the possibilities of your life becoming netter in your letter. When the bank sees that your current situation may soon be over, they will refrain from giving you a loan. The bank needs to know that you have plans of repaying the loan once your financial status improves. You can incorporate number and percentages in your letter to explain your loss of income. The bank needs to know the accurate figure and the source of any money that you are4 borrowing. When writing the letter, it is advisable to exaggerate the level of financial crisis you are going through. In this article, you will get to know what things you should keep in mind as you write the letter.
Your letter should never contain an obvious story. Explaining that your house value has reduced and that your mortgage value is more than the value of your house will hardly convince the bank. Include details about the changes in your financial situation since you got the mortgage. In case the company you are working for is relocating and your job is at risk if you are unable to sell your home and move, ensure you document this when writing the letter. In case your mortgage is adjustable, you can use the increasing interest rates as a factor.
Avoid leaving out any information when writing down the letter. Showing your lender that you are in a terrible financial crisis should be your main goal. Ensure that you sound needy in the letter. You should use your language when writing as if you are talking directly to the banker. Contacting an attorney may be a good idea to help you know of all the options you have. It is possible to have other solutions to your hardship other than loan modification and short sale.
Make sure that you avoid prioritizing loan modification or short sale. Inform the bank that you tried other methods to resolve your financial crisis before turning to them. It is recommended that you show the bank that you are making an effort to find another job in case you lost your previous one.