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Financial Hardship Sample Letter

In order to avoid a foreclosure once you have missed out the payments you must write a hardship letter. This letter is the first communication that the defaulting borrower takes up with the lender. This letter helps you avoid a foreclosure. Actually with this letter you communicate them your financial standing and your explanations on the default. Your financial excuse does serves as the plea, provided it is expressed correctly in the hardship letter. This letter is aimed to urge the lending company to consider their case for a ‘work out.’ The success of your negotiations with the lender is based on this letter, so it must be presented in the right format.

Before finalizing this letter, you must know the guidelines for the same. These are as follows:

· The matter must be very direct and easy to follow.

· You must be very frank and honest while explaining your financial standing in this letter. For that it is important that you admit to the fact that you are in a trouble.

· The letter must show your desperation and need to save your house.

· In the letter put forward all the facts & figures precisely.

· What ever you write in there must also be backed by enough proofs.

· In order to explain your financial standing, mention your monthly income & expenses. The expenses must also include the household expenses. The income must also show the changes that have led to the financial crisis.

· You must explain how long would your financial crisis last. Then assure the lender that you would make the payments on time after that given period of time.

· The letter has to be presented in the formal pattern.

· You may choose to write o type the letter. What’s more important is that it must be very clearly readable. If your hand writing is not clear, then go in for typing.

· When you mail the letter, make sure that you choose a very professional & certified mail service. You must also have the letter of receiving of the mail. This would help you have a proof that the lender has received the letter.

Format of Mortgage Foreclosure Letter:

The Borrower’s Name
Borrower’s Address
Borrower’s Zip Postal Code
Borrower’s Phone Number
Borrower’s Email Address

Lender’s Name / Mortgage Company’s Name
Lender’s or Mortgage Company’s Address

Loan No.: (the Borrower’s Loan Number along with the key word like Loan Modification, Short Sales, etc.)

I (the Borrower’s Name) request you to kindly review my financial situation and see if my case qualifies for the work out option.

My financial problem that led to the default in the income arose due to: (give the title of the problem here.)………

(Give the explanation of the problem in detail with the facts & figures and the relevant dates)

I believe that this situation is (Temporary or Permanent).

I, (the Borrower’s Name), undertake that the information provided here is true to the best of my knowledge.

The Borrower’s Signature
Date
Co Borrower’s Signature
Date

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