Hardship Letter is a very important piece to include with a loss mitigation package
How to write a Hardship Letter
A Hardship letter is a written statement explaining the mortgage is in default and is required by all mortgage companies in order to qualify for any type of loss mitigation. If you do not have a valid hardship you will not be considered for a plan to stop foreclosure. A hardship letter is your chance to explain in detail what hardship you have and in your life to make you fall behind in payments. Another term that the mortgage company used is a RFD (Reason for Default). The letter needs to be actual details and supporting documentation will always help to prove your hardship. If you are planning on saving your home from foreclosure the hardship must have been temporary and you are now in a position or will be in a position to begin making payments. In some instance over extended will be a legitimate hardship stated in a hardship letter but there really needs to be more detail. There are often discrepancies between what appears on the hardship letter, credit report, and other financial data. Questions you must formulate in order to write a good hardship letter are when did the loan become delinquent, how have payments been managed from the point of hardship to the point of becoming delinquent.
Important information needed to write a hardship letter:
- Date
- Loan Number
- Reason for Default - Hardship
- Supporting documentation
- events detailed
- dates of events
- Your proposed outcome - what you would like to happen
- Documents supporting end of hardship
I have listed some valid reasons for hardship that will be accepted on a hardship letter.
- Death of borrower
- Death of spouse or family member
- Unemployment
- Decrease in working hours
- Elimination of overtime or second job
- Involuntary job relocation
- increase of expenses due to short term unemployment
- mandatory pay reduction
- decline in earnings for self employment
- failure of business
- short term or permanent disability
- increase in expenses due to illness
- divorce
- incarceration
These are the most common. Although not a complete list. If you need help to stop foreclosure we can help
Some Comments from Homeowners
I did not understand what Chase was talking about so I did a search on How to write a hardship letter an found this great information on writing a hardship letter. Thank you, J Peele - Memphis, Tennessee
Countrywide requested a hardship letter and I did not know where to begin, I searched on hardship letter and your information was more complete than any others I reviewed. You seem to know loss mitigation and definitely know how to write a hardship letter.
Signed, H Rodriguez - Dallas, Texas
|
