To Whom It May Concern: I am writing this letter to explain my unfortunate set of circumstances that have caused me to become delinquent on my mortgage. I have done everything in my power to make ends meet but unfortunately I have fallen short and would like you to consider working with me to modify my loan.
Also question is, how do you write a hardship letter to a mortgage lender?
Make a specific request:
Start by stating the purpose of your letter (whether it’s a loan modification or a short sale), so your lender knows what you want. It should say something like “I need to restructure my mortgage and obtain a lower, fixed interest rate…,” in a way that compels them to find out why.
Similarly one may ask, are hardship withdrawals verified?
IRS: Self-Certification Permitted for Hardship Withdrawals from Retirement Accounts. … Employees do, however, need to keep source documents, such as bills that resulted in the need for hardship withdrawals, in case employers are audited by the IRS, the agency said.
What is considered a hardship for a loan modification?
Some of the most common types of hardship are: job loss, pay reduction, underemployment, declining business revenue, death of a coborrower, illness, injury, and divorce.
How do financial hardship letters work?
A financial hardship letter is usually written by those who cannot make their payments towards debt. It is the best way to explain to a lender why you’re lagging in your obligations. The lender can use the letter to decide whether or not they will offer relief either through deferred, suspended or reduced payments.
What happens when you apply for financial hardship?
Hardship is intended to be short-term assistance, where you will be either able to return to normal repayments, or pay out the loan within a reasonable timeframe.
What should a hardship letter say?
How to Write a Hardship Letter – The Ultimate Guide
- Hardship Examples. There are a variety of situations that may qualify as a hardship. …
- Keep it original. …
- Be honest. …
- Keep it concise. …
- Don’t cast blame or shirk responsibility. …
- Don’t use jargon or fancy words. …
- Keep your objectives in mind. …
- Provide the creditor an action plan.
What is considered a hardship letter?
A “hardship letter” is a letter that you write to your lender explaining the circumstances of your hardship. The letter should give the lender a clear picture of your current financial situation and explain what led to your financial difficulties. The hardship letter is a normal part of the loss mitigation process.
How do I request a hardship?
To request a hardship program, call your lender and find out what their preferred method of communication is. Some require a written letter, while others ask that you fax the letter. Make sure you get the appropriate fax number or address and retain a copy of the letter for your records.
What qualifies you for a loan modification?
Who Can Get a Mortgage Loan Modification?
- Long-term illness or disability.
- Death of a family member (and loss of their income)
- Natural or declared disaster.
- Uninsured loss of property.
- Sudden increase in housing costs, including hikes in property taxes or homeowner association fees.
- Divorce.
What are proofs of hardship?
Proving an economic hardship often requires a lot of paperwork as evidence. Evidence often submitted with an application include things like: proof of income (pay stubs, offer letter, etc.) proof of other income (e.g., alimony, child support, disability benefits)
What proof do you need for a hardship withdrawal?
Documentation of the hardship application or request including your review and/or approval of the request. Financial information or documentation that substantiates the employee’s immediate and heavy financial need. This may include insurance bills, escrow paperwork, funeral expenses, bank statements, etc.
How do you explain financial hardship?
Financial hardship typically refers to a situation in which a person cannot keep up with debt payments and bills or if the amount you need to pay each month is more than the amount you earn, due to a circumstance beyond your control.