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Learning how to write a hardship letter is very important if you need to convince your lender that you are facing dire financial conditions. A hardship letter is used in the financial world to motivate your lender to help you deal with drastic measures that include: immediate foreclosures, loan modifications, forbearance agreements and other loan workout arrangements. Your hardship letter must convey the urgency and desperation that moves the lender to action immediately so that you will save your home.

Writing a hardship letter that is effective requires you to be very personal and include reasons why you have become delinquent in your mortgage loan payment. The reasons need to be legitimate such as long-term medical issues, job loss, family death, natural “act of god” disasters, etc. There is no reason for you to feel embarrassed by divulging this information since financial hardship can affect anyone of any income level at some time in his or her life.

In learning how to write a hardship letter consider the following advice: 1) relate in your letter how you got into your present financial state and describe mitigating factors you have applied to get out of the situation such as using retirement or savings funds, 2) describe the immediacy of your need to get the lenders help because all of your mitigating options have run out and the lender is your last chance of help and 3) describe in excruciating detail the pain and suffering that you are experiencing because of your present hardship. Hopefully, a compassionate person is reading your letter and will be moved to help your resolve your present suffering.

You also need to make the case while writing your hardship letter that a solution for you is also a solution for the lender. If you foreclose on your loan both you and the lender lose. Remind the lender that a loan workout, loan modification, loan forbearance, etc. will benefit you both when you get back on your feet. Also, make sure that you are completely truthful on your hardship letter. All the claims you make will need to be backed up by proper documentation and if you lie about anything your will ruin your chance for any type of help. You may even find yourself facing charges for mortgage fraud.

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4. Mortgage Loan Modification Assistance
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