Spencer Lanoue
Writing a hardship letter to your mortgage company might not be something you ever thought you'd need to do. Life can throw some curveballs. If you’re in a situation where making your mortgage payments has become difficult, a well-crafted hardship letter can be a critical step in finding relief. In this post, I'll walk you through the process of writing a hardship letter that clearly communicates your situation and persuades your lender to consider your request.
Getting Started: What's a Hardship Letter?
A hardship letter is a formal communication to your mortgage company explaining the financial challenges that have made it difficult for you to meet your home loan obligations. Think of it as a personal appeal where you lay out your circumstances, hoping to reach an agreement that will ease your financial burden.
The goal is to provide enough information for the lender to understand your situation. Yet be concise enough to keep their attention. It’s not just about detailing your financial woes. It's also about showing your commitment to resolving the situation. Let's break down what makes a hardship letter effective.
Setting the Right Tone
Now, you might be tempted to pour your heart out in a ten-page saga of financial despair. But hold that thought. The tone of your hardship letter should be professional yet personal. You want to strike a balance that conveys sincerity without sounding desperate.
Start with a formal greeting, addressing the letter to a specific person if possible. This personal touch can sometimes make a difference. Keep the tone respectful and clear. Remember, the person reading it is probably handling many such requests.
Dear Mr. Johnson,
After the greeting, dive into a brief but clear explanation of why you're writing. Get to the point early to ensure the reader understands the purpose right away.
Due to unforeseen circumstances, I am experiencing financial difficulties and am unable to meet my current mortgage payment obligations.
State the Hardship Clearly
When it comes to explaining your hardship, clarity is king. You want to provide specific details about what has caused your financial strain. This could be anything from a job loss, medical emergencies, or other unexpected life changes.
Avoid vague language. Instead of saying "I've had some financial difficulties," say "I was laid off from my job in January, and my unemployment benefits are insufficient to cover my mortgage payments."
In January, I was unexpectedly laid off from my position as a project manager. Despite actively seeking new employment, I have not yet secured a new position, and my unemployment benefits are insufficient to cover my mortgage payments.
Provide Supporting Details
Details are crucial. You need to back up your claims with facts and figures. Attach any relevant documents that can support your case. Like termination letters, medical bills, or pay stubs showing a reduction in income.
When you present these details, it helps paint a fuller picture of your situation. Just ensure that your letter doesn't become a data dump. Integrate these facts naturally into your narrative.
Attached to this letter, you will find a copy of my layoff notice and recent bank statements reflecting my current financial situation.
Outline Your Proposed Solution
Once you've laid out your situation, it's time to propose a solution. This is your opportunity to show the lender that you’re proactive and committed to resolving the issue. Whether you’re asking for a loan modification, temporary payment reduction, or any other form of relief, be clear about what you’re seeking.
Explain how you plan to get back on track. This might involve detailing other sources of income, upcoming job prospects, or any other steps you're taking to improve your financial situation.
I am requesting a temporary loan modification to reduce my monthly payments for the next six months while I continue to seek new employment. I am confident that with this adjustment, I can meet my obligations and return to the original terms of the loan.
Express Your Willingness to Cooperate
Conveying a willingness to work with the lender can make a positive impression. Show that you're not trying to walk away from your obligations but are seeking a realistic way to fulfill them.
Offer to discuss your situation further and express your openness to exploring other solutions they might suggest.
I am eager to discuss any other options that may be available and am willing to provide any additional documentation needed to facilitate this process.
Keep It Concise
While it’s important to be thorough, you also want to be concise. The person reviewing your letter might have dozens of these to go through, so getting to the point quickly is appreciated.
Keep your letter to one page if possible. Use clear, straightforward language, and avoid overly technical or emotional language that can detract from your main message.
Proofread and Edit
Before you send your letter, make sure it’s polished. Check for spelling and grammatical errors, as these can distract from your message and make your letter seem less professional.
If you're not confident in your editing skills, consider using tools like Spell to help refine your writing. It's like having an AI-powered editor that can catch mistakes you might overlook and offer suggestions to improve the clarity and tone of your letter.
Sample Hardship Letter
To give you a clearer idea, here’s a sample of how a hardship letter might look:
Dear Mr. Johnson,
Due to unforeseen circumstances, I am experiencing financial difficulties and am unable to meet my current mortgage payment obligations.
In January, I was unexpectedly laid off from my position as a project manager. Despite actively seeking new employment, I have not yet secured a new position, and my unemployment benefits are insufficient to cover my mortgage payments.
Attached to this letter, you will find a copy of my layoff notice and recent bank statements reflecting my current financial situation.
I am requesting a temporary loan modification to reduce my monthly payments for the next six months while I continue to seek new employment. I am confident that with this adjustment, I can meet my obligations and return to the original terms of the loan.
I am eager to discuss any other options that may be available and am willing to provide any additional documentation needed to facilitate this process.
Thank you for considering my request. I look forward to your positive response.
Sincerely,
John Doe
Final Thoughts
Writing a hardship letter might seem daunting. But with a clear structure and honest communication, you can effectively convey your situation to your mortgage company. Remember, the goal is to provide clarity and propose a feasible solution. Using a tool like Spell can help you write and edit your letter more efficiently, making the process smoother and less stressful.
