1. Be honest
You do not want to lie on your hardship letter. If you do, chances are it will come back to bite you. Your hardship letter should include documentation to prove that you are unemployed, or receiving a certain amount of income; if you make a story up, or exaggerate, it will do you no good. If you truly in a bind, and can’t make payments on your home for a good reason, it will shine through in your letter and your loan modification will have a better chance.
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To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
I have had no problem making my payments for over four years now including extra principal whenever possible and do not want that to change. The main reason that caused us to be late is that I purchased my home at 2005 in May. At that time I was employed by Motorola and business was very good. My salary and the possibility of a promotion and raise made me sure that I could easily support my mortgage. Although, holding my position so strong for so many years, unfortunately, a downturn in the market caused my company to reduce its workforce and I was laid off (loss of Job)
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A loan workout is an agreement that is negotiated with your current lender that changes the terms of your current loan. Lenders are willing to negotiate when borrowers are facing financial difficulties and can’t obtain other financing alternatives. You must show the lender why it would be in the lender’s best interest to agree to a workout arrangement. If convinced, a lender may be willing to reduce the loan interest rate, reduce monthly payment amounts or change other loan terms.
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