Example Of A Hardship Letter
Example of a Hardship Letter
Seeing an example of a hardship letter may help point some distressed homeowners in the right direction while trying to write a hardship letter. Writing a compelling and concise hardship letter is often the key to achieving approval on a loan modification request. Mortgage lenders may have to sort through thousands of hardship letters so it can be critical to stay direct and to the point. Homeowners trying to get a loan modification may wish to learn as much as possible about how to write a strong hardship letter.
Examining an Example of a Hardship Letter
While hardship letters often vary significantly from homeowner to homeowner, it can be very beneficial to examine this example of a hardship letter to review the important elements highlighted in green:
John Doe [Name of Loss Mitigation Specialist]
Big House Mortgage [Name of Mortgage Lender]
123 Lake Drive [Address of Mortgage Lender]
Jacksonvillle, FL 32233
Jacksonville, FL 32233
Loan #: 1234567 [Loan Number]
To Whom it May Concern,
[Identify the intent of your hardship letter]
I am writing this letter to request a loan modification and identify the cause of my financial hardship that contributed to a default on my mortgage. I am committed to keeping the home and will do anything in my power to bring the mortgage loan current.
[Identify the cause and date of the financial hardship]
The company I worked for recently downsized and let go of many employees. Unfortunately, my employment with the company was terminated on 08/13/2013 and I was forced to file for unemployment. I am currently actively seeking employment, but it has become very difficult trying to afford my mortgage with three kids on only an unemployment check.
[Explain how this caused a default on mortgage payments]
With such a significant reduction in my monthly income, I inevitably fell behind on my mortgage. I worked with my previous company for over 10 years and the compensation from unemployment constitutes a 75 percent reduction in my normal pay. I missed two mortgage payments before contacting you and expect to miss a third mortgage payment in the near future. I am investing every effort into rectifying this issue as soon as possible.
[Explain what steps are being taken to resolve the mortgage delinquency]
During the last couple of months, I sent out my resume to dozens of companies and I have two interviews lined up in the coming weeks. Should my interviews not turn out successfully, I am prepared to seek part-time employment until full-time employment can be secured.
[Identify any other money available that may be contributed to the mortgage]
I do have a couple of assets that may be liquidated in cases of emergency. I have a boat worth approximately $2,000 and investments through my 401k totaling approximately $5,000. If the liquidation and contribution of these funds increases the likelihood of getting approved for a loan modification, I am prepared to do so.
[Attach evidence to support the claims in the hardship letter]
I enclosed with this letter supporting documentation including:
- Banking statements
- A breakdown of my monthly budget
- Letter of termination from my previous employment
- Unemployment pay stub and former pay stub
- The title of my boat with an appraised amount
- 401k statements
I am confident a loan modification to reduce my monthly payments from $1300 per month to $800 per month can help me afford my mortgage and bring my loan current. I hope to minimize all expenses possible in order to keep my valued home. I appreciate your fair consideration.