Need Mortgage Refinance

Hardship Letter and Key Questions to Evaluate

Many people are finding it difficult to explain why or how they came to be in a position of struggling to meet their mortgage payments, problem is if you are applying for a loan modification then this part of the requirement and you have to provide a reasonable and honest explanation for why you are struggling.

You will find a template for putting together a hardship letter in one of the previous posts on this site called Hardship letter template for a loan modification request.

For further information I have included a link at the top of the page to an article that explains what information you need to add to a hardship letter when explaining how you came to be in financial difficulty. The article is very well written and tells you exactly which questions you need to answer with respect to explaining your difficulties from a lenders perspective, which is of course the perspective you need to understand and satisfy.

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When you are writing to your home mortgage lender with a view to securing a loan modification package being offered as part of Obama’s stimulus plan for homeowners under the ‘make home affordable’ initiative. You will need to explain how you have fallen into financial hardship.

It may be possible that the bank has a hardship form of some sort that you can fill in, which would be useful as then all you would need to do is answer their questions honestly and explain how you came to be in a situation of not being able to afford your mortgage payments.

In the absence of a form however it is a really good idea to use hardship letters that follow a template to include all the information that the bank or lending agent would expect you to provide, a sort of hardship letter sample.

Below is a request letter template that shows you how to construct a letter for this purpose.

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