Sample Hardship Letter: Effective communication is the single most important aspect of describing hardship issues. Many modification requests fail because the homeowners can not tell their story in a simple way. It is easy to forget there is a real human being analyzing the hardship letter within the lender’s or servicer’s loss mitigation department who is responsible for determining the existence of a real hardship. With that said you must keep your hardship letter simple and get to the point quickly.

Loss mitigation departments are overwhelmed with foreclosures, short sales, and modification requests. They do not want to read a ten page letter regarding the loan officer who put them in the loan, why they bought the house, the memories they have had there and why they want to keep their home. When writing the hardship letter, keep the letter simple and to the point. In addition, handwrite the hardship letter. The fact is that people personally relate to handwriting more than a typewritten letter and this includes the lender’s or servicer’s loss mitigators. What follows on the next pages are perfect examples of sample hardship letters, a financial worksheet, an income and expense worksheet, a sample loan modification request and a sample stacking order for you to use. Notice as well that on the loan modification request and on the sample stacking order for a loan modification you will need to include documentation of your home’s value. You can obtain reliable documentation of your home’s value from a local Realtor, Title Company or from an appraiser.Sample Hardship Letter

The vast majority of hardship letter sites on the internet are devoted to loan modifications and helping consumers draft hardship letters for them. However, hardship letters are required and can be used for: short sales, credit card debt negotiation, requesting lower interest rates on credit cards and installment loans and a host of other consumer loans.

The reason hardship letters are so effective in recent history is that lenders are having a difficult time keeping their paying clients paying their bills on time. The debt settlement industry is going through an enormous boom at present because of the state of economic affairs in America and all over the world. The moral of the story is that a well crafted hardship letter accomplishes a number of goals:

1.     It puts your lender on notice that they may be losing a great deal of money if they don’t pay attention to you.

2.     It makes your lender understand that you’re not some “run of the mill idiot” that doesn’t care about their finances.

3.     It tells a personal story in a short time frame that loss mitigation agents may connect to personally.

4.     If you’re hardship is related to active military deployment or other legally protected statuses, your lender may have to legally come to your assistance.

5.     It establishes a record of correspondence with your lender. This is important if you ever decide to file a lawsuit against your lender.

There are a number of other reasons that hardship letters can help you and they are not all related to loan modifications. If you need a sample hardship letter and you can’t find one on this site then please leave us a comment and we will begin the work of drafting a sample hardship letter that will work for your specific context.

Sample Hardship Letter : To perform the most comprehensive forensic loan audit you should compile all of the loan documents you maintain and get all of the loan documents your lender maintains. A Qualified Written Request (QWR) is a written demand to your servicing company. After receiving a QWR, the servicing company has twenty days to respond to the request and forward a copy of all loan documentation on file. The servicing companies also have to suspend all reporting activity to the major credit bureaus and then resolve the issue within sixty days. Federal RESPA laws require the servicing companies to comply and respond within this specified time frame. A QWR will be generated by you and submitted to the servicer for every file prior to the completion of the forensic loan document audit.

Sample Hardship Letter

American Home Mortgage Services, Inc

Attention: Correspondence Dept.

Re: Loan Number: 1234511722

Name : Johnathan Jones

Subject Address : 12345 Erehwon Street, Heartland, OH 12345

To Whom It May Concern: Please accept this letter as a “Qualified Written Request” under Section 6 of the Real Estate Settlement Procedures Act (RESPA) to obtain copies of ALL documents pertaining to the origination of the above mentioned Clients’ current mortgage on the referenced subject property. Please see below for a list of documents needed.

Sample hardship letter : A Hardship letter is required by most Mortgage Companies to consider you for a “loan modification”. This is your opportunity to appeal to them to give you another chance. This should not be used to complain to what they have done or not done to make your situation worse. This letter must be honest and represent the facts clearly. This letter must show to them that the situation that caused you to fall behind was temporary and you are now in a position to make your payments on time. You must also have a legitimate excuse for falling behind (further more, sell it)… financial problems in itself would not be an adequate excuse. Loss of a job, death in the family or an illness would be an acceptable reason to fall behind on your Mortgage temporarily (Examples of Hardships).

Keep the hardship letter format to a minimum outlining the facts in a specific and concise manner. Remember, you are not trying to get out of paying your mortgage. You want to renegotiate the terms of your current mortgage to a more affordable payment that will fit into your current financial situation.

This hardship letter is a vital step you must take in order to save your home and avoid foreclosure. You are not alone, there are many homeowners facing the same situation due the current global financial crisis.

Due to the global financial crisis, many homeowners are finding themselves unable to meet their financial obligations. Home foreclosures are at an all time high because of many different financial hardships. A hardship letter written to your mortgage company may be the only opportunity you have to save your home from foreclosure.

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