Here is an example of what is needed in a Hardship Letter A hardship letter must be a clearly written description of how you got into a hardship or failed to make your mortgage payments. Dates are very important to establish a time line. If you cannot remember the specific date, at least the month and year (in August 2008), I lost my job where I had been employed for 7 years…. Also, it is very important to look at all the indirect factors that made it financially difficult to maintain your mortgage payments on time; i.e., family commitments, other bill payments, unexpected medical, automobile expenses, repairs to the home, increase in property taxes and insurance, or any related costs. The factors that affected your ability to make mortgage payments, must be facts beyond your control. Loss of job, injury, illness, divorce, death in the family, reduction in hours or pay, increases in unexpected expenses from medical, funeral and/or car break down (which is necessary for you to get to work in). These examples are ideas, there are many more scenarios. You should indicate that you have exhausted all avenues of trying to pay back the bank and that you have no choice but to sell the property, in order, for the bank to recuperate it’s mortgage monies. This is a very important statement, as it clearly indicates that you are trying to rectify the situation with the bank, even at the expense of losing your home. At no point, should you blame the bank for your problems, this will not help our case. You must not indicate that you are want to work out a solution to keep your home; when you say that, the bank is not obligated to work out a short sale settlement. You should try a loan modification first, if the bank does not offer this option to you, a Short Sale is your next option. You do not want to indicate that things are getting better and your situation has improved, this letter should not be a solution; it is strictly to demonstrate your hardship. Letter must be typewritten and legible, and in many cases, handwritten letters are illegible and the banks will reuse to review them. The letter should be no longer than 1-2 pages, 1 page is best. A paragraph is not enough. Be thorough and put some thought into your letter. The letter must be dated and signed by all parties on the mortgage. updated 5/5/2009 |