Hardship Letter: Credit cards have been a huge problem in this country for years, but remember everything in this life (even credit card debt) is workable. When negotiating your CREDIT CARD DEBT don’t sound to eager to settle, get angry or show hesitation and be calm, professional, polite and firm.
Above all be patient, taking your time and not losing your cool. Creditors know the older your debt gets the harder it is to collect it, so as the days go by they are more likely to cut their losses and settle for anything near what you propose.
When witting your Credit Card Hardship Letter don’t make an offer you cannot afford. Many debts are settled for as little as 7 cents on the dollar. Your opening offer should be no more than 20-25% of the original debt amount – the creditors will counter.
You also need to keep in mind the credit card companies can take legal action against you, if the debt is delinquent for a long period of time.
You’ll want to get all agreements in writing and make sure you have a file of the delivery receipts and a copy of the Hardship Letter.
The bad news is a credit card debt settlement will show up as a negative on your credit report.
Credit Card Hardship Letter Sample
This letter is intended to be used as a first step in negotiating your debt settlement. It is to be used as a guide only. You must delete any information that does not apply to your situation and add your personal information that you feel is needed.
(Date)
(Company’s representative)
(Company’s Name)
(Company’s Address)
(Company’s phone number)
RE: Hardship Letter – Account number: (#)
Dear (Ms/Mr. Robinson:)
Due to my bad financial situation I am writing this letter to request a Settlement of 60 to 70 percent.
Since last (month) my income has dropped considerably due to a (illness, job laid off,…), making it difficult to make full monthly payments.
I am enclosing my financial statements and documents that prove my hardship at the moment. (include any late payments statements, car repossession, past due statements, bank statements,…)
I am trying to avoid Bankruptcy and/or Foreclosure and am currently in negotiation with other creditors with whom I need to make similar arrangements.
I kindly request that you seriously consider my offer. I will mail the payment to your organization within five business days, after I am informed by writing of your decision.
If you wish to discuss this settlement offer, I can be reached at (your daytime phone number with area code).
Sincerely,
(Home Owner Signature)
(Home Owner Name)
(Co-signer Name)
(Home Owner Address)
(Account #)
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What am i suppose to do now that im told i cant get a loan mod, what are my options then? Is there still a chance to stop foreclosure if you are denied the choice of loan modification? The answer is most definitely a yes! Let us look at all your other options to put a stop to mortgage foreclosure if you are not eligible for loan modification:
1) Hardship Letter, hardship letter and hardship letter to stop your foreclosure, this is probably the most-used option after the solution of refinancing. If written properly, the hardship letter could be an extremely useful tool to help your creditors understand of your current financial situation, and obtain their sympathy for you to get back on track in terms of mortgage payments. You could either draft out the letter yourself, or get assistance from a legal professional to help you with the letter. The hardship letter has to be attached with the appropriate supporting documents before you meet your creditors for negotiations.
2) Another option to stop foreclosure now is by asking for a foreclosure court hearing, this is a legitimate and legal way that many undertake in order to stay in your home as your work towards staving off foreclosure proceedings and get your finances under control again. There are normally hundreds of cases waiting to be heard in each circuit court in the country, thus when you file your case, you would be required to wait for a duration of a few months to up to two or three years before your case goes to court. That means plenty of time for you to work on your finances and get back on track in terms of mortgage payments.
3) Locate errors within your Housing Closing Contract, and use them to your advantage to get foreclosure proceedings off your back! You could either run through the documents yourself, or get a lawyer to find the errors for you! But hiring someone would mean having to pay him/ her for the service, thus it is best that you do it yourself (as the errors are fairly easy to locate).
As you can see, there are plenty of ways to stop foreclosure as mentioned above. There are also other ways such as filing for bankruptcy, but only explore this option if all other solutions have been depleted.
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