If you’re applying for a mortgage modification, your lender will probably request a hardship letter explaining why you’ve fallen behind on your mortgage and need to receive a loan modification. Your mortgage modification attorney can assist you to craft such a letter, but you’ll want to offer it some thought before meeting with a lawyer.
Events That Cause a Financial Hardship
Financial hardship is an occasion that negatively affects your monthly income or expenses. Examples of such events would include:
- A sickness or disease diagnosis that has made you miss work, cut your work schedule or let you lose your job
- Unemployment or an automatic loss in your work schedule
- A failed business
- The death of the person who co-signed the loan and/or contributed to the loan payments
- Military deployment
- A natural disaster that damaged the property
- Other circumstances beyond your control
Tips for Writing a Financial Hardship Letter
When writing your letter, keep the following in mind:
- Keep your letter short-ideally one page and no more than two pages.
- Avoid run-on sentences and long paragraphs. The person who reads it will probably just skim it.
- Include your name, address and loan number in the letter’s header section.
- Lead with the key goal for your financial hardship.
- Remove unnecessary features.
- Be polite.