Sample Foreclosure Hardship Letter by Simon Volkov, guest author
A foreclosure hardship letter is a crucial element for borrowers attempting to save their home from foreclosure. When borrowers become delinquent on their mortgage note, they must contact their lender’s loss mitigation department to request a loan modification or short sale approval.
The foreclosure hardship letter is used to outline the circumstances that caused borrowers’ to become delinquent on their account. For many, the letter of hardship can be painful to write. Many people are intimidated by the process. They do not know what information to include or how to present it in the proper format.
Foreclosures and short sales are administered by an assigned bank loss mitigator. In order to determine who will be handling your account, you must contact your lender directly and ask to speak to someone in the loss mitigation department.
Loss mitigators work with homeowners facing financial difficulties every day. Take time to build a working relationship with your loss mitigator. Ask questions to help better understand what is expected.
Loss mitigators do not make final decisions regarding home mortgage loans. Instead, they work as a mediator between the borrower and lender. However, these individuals can make or break your deal, so be kind and respectful and provide requested information in a timely fashion.
Your foreclosure hardship letter will be reviewed by the loss mitigator. Realize these employees receive hundreds of hardship letters each month. It is important to keep your hardship letter short and concise, while covering important facts.
Mortgage experts recommend the letter of hardship be handwritten. If your handwriting is hard to decipher, it is better to type the letter or have someone else write it. Considering the importance of this document, take every precaution to ensure the loss mitigator can read and understand it.
The following sample foreclosure hardship letter provides a basic outline of information that should be included. Make adjustments depending on your personal situation. The letter can be used when requesting aloan modification or mortgage short sale.
Make adjustments to the text depending on if you are seeking a loan modification or short sale arrangement.
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Tom and Tammy Jones
123 Any Street
Anytown, State 12345
Bob Smith
American Mortgage Lender
123 Anywhere Avenue, Suite A
Anytown, State 12345
Current Date
RE: Your Loan Number (include either Loan Modification or Short Sale)
Dear Mr. Smith,
We are contacting you today to request a loan modification for our house located at 123 Any Street. We are grateful for the opportunity to explain circumstances which caused us to become delinquent on our mortgage note. Although we have done everything we can to reduce living expenses, we are still short on the money owed to you.
The reason we became delinquent with our mortgage payments is (explain the reason here). At this time we do not earn sufficient income to pay our regular monthly mortgage payment. We are concerned if we fall further behind we will not be able to pay what is owed. We have every desire to pay the delinquent amount to stay in our home, but at present we do not know how to accomplish this. We are contacting you for assistance.
We are requesting consideration to temporarily reduce or suspend our mortgage payments for a few months through a loan modification. This would allow us to become current on our monthly payments.
Our home is our most valuable asset and we desire to work with you to avoid foreclosure. Please advise us of available options to stop foreclosure at your earliest convenience. We are anxious to reach an agreement and appreciate your prompt response.
Respectfully yours,
Print name of Borrower(s)
Signature of Borrower(s)
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Send the letter of hardship via certified mail with a return receipt request. This provides proof the letter was sent and received by the mortgage lender.
About author
Simon Volkov is the author of Short Sale Hardship Letter ebook course and has helped hundreds of homeowners learn how to write a foreclosure hardship letter.