SAMPLE HARDSHIP LETTER #1
DATE____________________
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 approving us for a short sale. Our number one goal is to get into a new house that we can afford and we would really appreciate the opportunity to do that.
The main reason that caused us to have a hardship and to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.
Our situation has continued to get worse and that is why a short sale would benefit us both. We would appreciate if you can work with us so we can get this property off both of our books.
We can no longer afford our mortgage with all late charges, arrears, fees put on back of loan, and all negative equity.
We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.
Sincerely and Respectfully,
Mr. & Mrs. ___________________
Signature_____________________ Signature: _____________________________
Last 4 SSN: ___________________ Last 4 SSN: __________________________
Loan # ______________________
Address______________________
Phone________________________
SAMPLE HARSHIP LETTER #2
DATE: _____________________
Re: Loss Mitigation / Short Sale Department
Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2010.
Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to short sale the property in order to avoid default or foreclosure on my home. I do not want to go through the foreclosure process. I want to sell this home so we do not have to go down that road
I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Lehman. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.
The main problem is that my property is now upside down and is worth less than what I paid for it which is preventing me from being able to refinance.
We can no longer afford our first mortgage because of the higher interest rate, all late charges, arrears, fees put on back of loan, and all negative equity.
I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income.
Thank you for your time and consideration.
Sincerely,
Mr. & Mrs. ___________________
Signature_____________________ Signature: _____________________________
Last 4 SSN: ___________________ Last 4 SSN: __________________________
Loan # ______________________
Address______________________
Phone________________________
DATE____________________
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 approving us for a short sale. Our number one goal is to get into a new house that we can afford and we would really appreciate the opportunity to do that.
The main reason that caused us to have a hardship and to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.
Our situation has continued to get worse and that is why a short sale would benefit us both. We would appreciate if you can work with us so we can get this property off both of our books.
We can no longer afford our mortgage with all late charges, arrears, fees put on back of loan, and all negative equity.
We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.
Sincerely and Respectfully,
Mr. & Mrs. ___________________
Signature_____________________ Signature: _____________________________
Last 4 SSN: ___________________ Last 4 SSN: __________________________
Loan # ______________________
Address______________________
Phone________________________
SAMPLE HARSHIP LETTER #2
DATE: _____________________
Re: Loss Mitigation / Short Sale Department
Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2010.
Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to short sale the property in order to avoid default or foreclosure on my home. I do not want to go through the foreclosure process. I want to sell this home so we do not have to go down that road
I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Lehman. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.
The main problem is that my property is now upside down and is worth less than what I paid for it which is preventing me from being able to refinance.
We can no longer afford our first mortgage because of the higher interest rate, all late charges, arrears, fees put on back of loan, and all negative equity.
I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income.
Thank you for your time and consideration.
Sincerely,
Mr. & Mrs. ___________________
Signature_____________________ Signature: _____________________________
Last 4 SSN: ___________________ Last 4 SSN: __________________________
Loan # ______________________
Address______________________
Phone________________________
| short_sale_hardship_letter_3.doc |
| short_sale_hardship_letter_example_4_PDF_version.pdf |
Tips For Hardship Letter
When obtaining an approval on a short sale, you/we need to demonstrate to the bank that you are in a financial hardship and it is no longer possible to continue with the payments. One of the key elements of obtaining a short sale approval is the hardship letter. Below are instructions on how to write a hardship letter to the bank.
1. Tell your “STORY” of hardship to the lender in a personal manner.
2. A longer and more heartfelt letter is better.
3. A handwritten letter is always best. However, if your handwriting is illegible, please type it out; it must be able to read.
4. Do your best but don't worry too much about punctuation, grammar, or spelling.
5. Use first names in your letter to describe who you are writing about. It’s less formal.
6. Address your letter “To whom it may concern”.
7. Make sure to date your letter
8. Describe at least three reasons why you will not be able to afford to make your payments.
Reasons people fall behind on payments:
- Loss of employment or a reduction of income
- Medical problems
- Adjustable mortgage loan(s) - unable to afford monthly payment after the adjustment.
- Divorce
- Depression (or other mental health issue)
- Abuse
- Employment relocation
- Accidents (auto, job, other)
- Loss of loved ones
- Crime
- Lawsuits
- Incarceration, etc.
Timeline the sequence of events of your hardship as best as you can. Try to include dates of events which led up to the financial hardship that you are facing now. Explain in your letter any and all other bills that you are behind on because of the hardship. The more information you can provide about your hardship the better.
