Having a hard time keeping up with your financial obligations?
Financial distress is affecting virtually all of us these days.
A hardship is when circumstances cause severe discomfort or lack of necessities of life and requires great effort to overcome.
It may be a good time to open up negotiations with your creditors. A well-written sample hardship letter is the first step to begin negotiating a short sale, home foreclosure, refinancing loan option or creating a payment plan for those credit card bills you need to settle for less.
A sample hardship letters is often used to explain to your creditor about your economic setback and the reasons why you are no longer able to keep up your financial obligations.
Hardship letters are intended to be used as the first step in a debt settlement negotiation with your creditor.
These type of letters are being used today by people of all walks of life from homeowners to executives.
In addition to the different forms each lender require, they also generally need:
When writing the your letter...
Short sale is when a lender agrees to take a discount on the loan of a property that is being foreclosed. Some banks will not agree with the discount, but most lenders actually encourage borrowers to work out a short sale rather than going through the full foreclosure proceedings.
Lenders require a hardship letter for most real estate short sales to get approved.
Here you will find some free sample letters that can be used as an example. So, you will have an idea how to draft the letter to fit your own situation.
Use Hardship Letter Sample as a guide only, deleting any information that does not apply to your situation and adding your personal information as needed.
SAMPLE HARDSHIP LETTER
Mr. John Smith (Company's representative)
My Home Loan LLC (Company's Name)
1234 Financial Street New York, NY (Company's Address)
1 800 555 6789 (Company's phone #)
RE: (your home address)
Dear (Mr. Smith:)
I am writing this letter to ask you to give me the opportunity to renegotiate our home mortgage. Kepping our family's home is our number one priority at this time.
In recent months, I've fallen behind on my mortgage and personal loans because (explain the circumstances how you have fallen into financial hardship...)
In the effort to make ends meet, we have even organized a garage sale for some of our furniture, personal property, and other items.
I want to take this opportunity to ask for a loan modification under the new stimulus program by the federal government. It is my true belief that I will be able to afford a lower mortgage payment and keep my family in our home.
Enclosed, please find documentation that will prove my current economic hardship. (Attach mortgage payments, medical bills, paycheck stubs, social security disability, welfare...)
If all our efforts to keep our home failed I hope we can avoid foreclosure and work out a short sale of our beautiful, nicely kept home, so a new family will have the chance to enjoyed it.
Please reply to this letter at your earliest convenience, so we will know what steps to take from now.