Hardship Letters - Tips On Writing Them - Samples printable pdf download

Hardship Letters – Tips on writing them

Hardship Letter for First Mortgage Holder – This letter should be addressed to your lender. It

explains why you are not able to make your mortgage payments. They need to understand

your living situation, hardships, divorce, job loss, unexpected medical problems, financial

losses, emotional state, in essence – a current moment in your life. We need to get them

emotionally involved so this letter must be very detailed. Do not hold back. Mention that you

have consulted with an attorney who recommended you file bankruptcy, but that you would

prefer to get the situation resolved. If you have tried to sell the house without success,

mention this too. This is your chance to plead with your lender. (See attached samples.)

Separate Hardship Letter(s) for Additional Lien Holders – This letter should be very similar

to the First Mortgage Hardship Letter. However, in addition to everything in the first letter

you will also include that when the property goes to foreclosure auction, their loan will be

wiped out.

A qualified Short Sale must be justified with cause. A few examples of justifiable cause are:

•

Illness of a borrower or co-borrower that qualified for the loan and because of such illness

cannot continue to make payments. This example would, of course need to be accompanied

by a doctor's statement of permanent or long term disability.

•

Death of a co-borrower who originally qualified for the loan.

•

Divorce or legal separation accompanied by legal documentation and attorney's

correspondence.

•

Involuntary loss of job or a significant modification in pay with documentation from

employer and recent and past check stubs as verification.

•

Illness of a family member wherein the borrower or co-borrower are the only ones that can

provide care, again a doctor's statement would be required.

There are several other situations that would effect proper qualification. The important thing to

remember is that they must be qualified and proven in writing to the lender or lenders.

Frivolous reasons will not be approved by the bank. For example, if you quit your job or were

fired for just cause; refinanced or acquired a loan with an accelerating payment, high interest rate

or negative amortization; ran your credit cards up to the max and can't afford all your monthly

payments; bought a new car or other large purchase and can't make all your payments; or decided

to separate from a spouse or significant other co-mortgagor without a divorce or legal separation;

you would probably not qualify for a Short Sale. The lender would likely foreclose, but each case

is weighed on its own merit. You may want to contact the lender and explain your unique

situation.

Veltri & Associates, Realtors

1012 Cox Cro Road, Toms River, NJ 08755

(732) 557-4600

01/28/2008

Hardship Letters - Tips On Writing Them - Samples