Sometimes, property damage can force you to become unable to pay your bills. For instance, with the recent hurricanes, Harvey and Irma, people have found themselves in significant financial difficulties. Insurance companies are slow to pay out, if they pay out at all, and some people have found that they have to replace virtually everything in their home. Many have also found themselves unable to work due to property damage at their place of work, which in turn means they are experiencing a financial hardship. In those cases, it may be possible to write a hardship letter, which is usually written to a mortgage company.
Tips on Writing a Hardship Letter Damage to Property
Your letter should be written formally. It should also be free from spelling and grammatical errors. Hence, make sure that you request someone to proofread your letter before sending it. In the letter, make it very clear what you are requesting specifically. This could be:
- Loan delinquency forgiveness
- Leniency in payments
- A full loan modification
Do also make sure that you indicate what is the financial product that you now have difficulty in paying. This could be a mortgage, but it could also be a car loan, a credit card, or any other financial product. Do also include your account number and personal details so that it is easy for the company to find you.
Avoid Being Emotional
You should then explain that you are currently experiencing financial hardship because of property damage. This is about being factual, not about being emotional. If you have experienced damage as a result of a hurricane, for instance, your creditor knows that you are going through difficulties. They are more interested in hearing how this hurricane has impacted your finances, not how you feel about it.
Be Clear as to What You Are Requesting
You should then make it clear what you are asking for specifically and for how long. If, for instance, you know that you will get back to work after several weeks, then you need to indicate this. If, on the other hand, you genuinely have no idea of how long the hardship will continue, then you must indicate that as well.
Describe the Damage to Your Property
Next, you have to explain the extent of the damage to your property. Make sure that the incident is dated, and that it is clear which property was damaged. Do also make it clear whether or not you have insurance and whether or not they have agreed to pay out on your bills and, if so, by how much. Document this as much as possible, including copies of the letters sent between you and your insurance company, photographic evidence, and so on.
Explain the Amount of Money Required for Repairs
Continue to explain that you currently require as much money as possible to repair or restore your property and that you will be unable to do so if you have to meet your financial obligations with the company you are writing to as well. It is of particular importance that you keep your creditor in the loop, showing how much you have been able to get ahead by not making payments so far.