How do you write a financial hardship letter to a mortgage company?

Answer 1

That depends upon what you want to say. You may wish to tell them that since your income has become smaller, you will have to make smaller payments, and you hope that this will not be a problem for the mortgage company. Or, you may tell them that you can no longer afford to make payments at this time, but if they give you more time, you may be able to resume payments at some future date. Or you might say that you can no longer make payments and will never be able to make any further payments on the property in question, therefore the mortgage company will have to repossess it.

The above was submitted by erasing all previous replies, which is generally improper in this format. I would also disagree with much of it. And telling them they will have to repossess makes that action faster and surer than suggesting a "deed in lieu of foreclosure" resolution.

The below are some of the previous responses reposted:

The best option is to contact the lender directly and discuss what options may be available before the mortgage goes into default. Lenders will not bother reading a letter if the borrower does not contact them directly first.

AnswerBegging for charity is better done elsewhere. + + So if that's what your thinking, you need to change the whole premise - complaining about your financial hardship will only advise them you aren't capable and they need to act to prevent further losses. Don't pretend for a minute that your financial problems will, or should, be resolved or even shared by them. And be sure, they've heard it all before.

However, acknowleging you had problems and that you -have- a plan to resolve them, and have done things to assure it won't happen again...but require a little understanding from them to make things right....and explaining exactly what steps you'd like to take to resolve it, and stressing why the plan - will work - then saying exactly what they can do ...so in the end they ultimately get completely repaid, that will have some great meaning.

A letter of hardship for loan modification is essentially your best prospect to give explanation to the lender, the conditions that led you to be in arrears on your mortgage.

It is crucial to be precise, clear-cut, and truthful while writing the hardship letter. Sugar-coating your situation is not recommendable.