Mortgage Hardship Letter Template | Download Sample Examples

A mortgage hardship letter is a standard written document provided by a homeowner to a mortgage lender or loan servicer in which he/she explains his/her financial hardships, which are impairing his/her capacity to make regular mortgage payments. In particular, this letter is meant to seek help in the form of loan modification, payment deferral, forbearance, repayment plans, and other hardship assistance options.

A financial crisis may occur because of several situations, such as unemployment, decreased earnings, health crises, divorce, unforeseen costs, bankruptcy of a company, or economic recessions. The hardship letter helps in giving a clear set of the situation, the effects it has brought on the financial position of the borrower, and what is being done to ameliorate the situation.

The Mortgage Hardship Letter is understandable, simple, and formal. It has relevant details of the variability of income and expenditures and why payments are now difficult, and it also shows the commitment towards addressing the issue. Other documents, such as income statements, medical bills, or termination letters, can be added to support the request.

The letter is imperative in a loan workout, and it is evidence of good faith by the borrower as they are trying to obtain relief from the lender or government hardship programs.

Related Products:

• Debt Hardship Letter
• Employment Hardship Letter
• Eviction Hardship Letter
• Extreme Hardship Letter

What Can You Request with a Hardship Letter?

Uses:

• Appeals to get mortgage payment help.
• Favors loan modification applications.
• Seldom explains the tardiness or delays in payment.
• Stops foreclosure action.
• Paper trails financial crises.
• Makes preparations to communicate with the lender.

Benefits:

• Deserves transparency and responsibility.
• Enhances the probability of loan relief.
• Helps prevent foreclosure
• Develops a documentation record of communication.
• Demonstrates the desire of a borrower to overcome the problem.
• Favors organized repayment bargaining.

Mortgage Hardship Letter types:

• Job Loss Hardship Letter
• Medical Hardship Letter
• Hardship Letter: Separation or divorce.
• Business Loss Hardship Letter.
• Letter of Temporary Financial Hardship.
• Permanent Financial Hardship Letter.

When to Use This Letter

• In case of struggling with making mortgage payments.
• Before defaulting on several payments.
• During the foreclosure risk
• When asking for a loan modification or forbearance.
• Following a substantial loss of revenue.

Specifications:

• A4 Format Paper: 29.7 cm x 21 cm
• Templates to be printed in PDF format.
• MS Word Compatible
• Editable Document Format
• Professional Financial Layout.
• No watermark is customizable.
• 24×7 Support Availability