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Debt Hardship Letter: How to write one?  

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HELP! Need to know how to write a hardship letter to my mortgage company
 

asked Dec 28, 2006 07:47 PM

chivonne
Best Answer
2
best answer

I haven't found a debt hardship letter to be that useful for my first mortgage. They just want you to call HUD or provide them with a long list of documents in an attempt to modify the loan. And you can get that far on the phone, without a hardship letter, at least in my experience with Wells Fargo.

However, my HELOC lender did acknowledge my hardship letter, but really still made little difference. All they want right now it to verify my income through 30 days worth of pay stubs, 3 months bank statements and 401k/investment accounts (as if I have them), and a list of all expenses or a budget. The don't seem to take the hardship letter at face value and want to verify what you tell them. That's understandable.

But I'm very weary of providing this information to a creditor who at the beginning of the call says all inform gathered will be used to collect a debt. It's actually a conflict of interest. They want to help you keep the house, or they want to collect the debt. Hard to do a good job at both, and I think their much more interested in collecting the debt or an advantageous loan mod for the bank.

answered Apr 10, 2009 11:12 AM

8 Answers

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Hi Chivonne -

Has someone advised you to do this? What hardship are you facing? Perhaps we can help you with some advice.

Since you have registered with this site, a debt counselor will be contacting you to offer their services. If you do not need debt counseling, please let them know when they call.

answered Dec 28, 2006 07:50 PM

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Are you referring to a financial hardship?

answered Dec 28, 2006 07:51 PM

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They want a copy of your las pay stub also what your expenses are each month. Explain why you are having a hardship. List every expense you have. KYSIDE38

answered Dec 28, 2006 07:53 PM

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I would definitely state when you might be back on your feet financially. Also, if you can make partial payments and how much.

answered Dec 28, 2006 07:57 PM

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I went to ggole and found a couple of websites on this topic. There is one website I fel is really good because it actually shows you a sample letter that you can rewrite with your own name and situation. Look it up & lots of luck with that. I hope it works out.

answered Oct 24, 2008 10:20 AM

Anonymous
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HI YOU INDICATED THAT YOU FOUND A WEBSITE WITH A SAMPLE LETTER COULD YOU SHARE THE WEBSITE

THANKS
A HOUSE

answered Dec 2, 2008 06:45 AM

Anonymous
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what website has a sample hardship letter

answered Apr 10, 2009 09:10 AM

Anonymous
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Writing hardship letters does not have to be difficult, but you need to know what your lender is looking for. Many homeowners simply do not understand the basics of writing an effective hardship letter and this is costing them their homes.
 

The main points for a financial hardship letter are:

1. Subject Line Request - Right off the bat let the loss mitigator know what you are requesting.
2. Brevity – Don’t let your financial hardship letter go on for page after page. Keep it as short as possible.
3. Personal - Let the loss mitigator get to know you and your circumstances.
4. Clarity – Get your points across in the clearest possible way and then provide a summary.
5. Information – Make sure you leave nothing out of your financial hardship letter. Attach important information such as bank statements, cash flow documents, income tax statements, letters of reference, etc.
6. Be Appreciative – The person reading this financial hardship letter did not get you into this mess but he or she is the one that can help you out of it. So be thankful and humble in your tone.

 

The financial hardship letter is not the only tool in your chest for a financial reprieve but it is by far one of the most important. So make it your prime instrument when dealing with the bank and get it in soon.

 

answered Feb 19, 2011 01:13 AM

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