mortgage hardship letters, hardship letter to stop foreclosureIf you have not encountered financial difficulty in the past couple of years then chances are you know someone who has. Many Americans have been impacted by the fiscal crisis and foreclosure rates have seen all time highs. Consequently many people would like to know how to write a hardship letter to stop foreclosure. Fortunately it is not difficult to write a financial hardship letter if you follow certain guidelines.
The most common mistake that people make when writing mortgage hardship letters is to ramble so that they end up with four or five pages that give vent to their feelings and frustrations. Obviously the threat of foreclosure is emotionally upsetting, as is the stress of being unable to make ends meet. However a mortgage hardship letter should be brief and concise because shorter letters are more likely to be read quickly. At most mortgage hardship letters should comprise of five short paragraphs that explain your situation clearly and simply.
When you are writing a hardship letter to stop foreclosure you must explain that changes have taken place which mean that you can no longer afford your mortgage payments. Simply saying that your financial situation has changed significantly and you can’t afford your mortgage anymore is enough.
If there is anything that indicates wrongdoing you need to outline it in the second paragraph of your letter. If the mortgage was sold to you with false promises that were misleading in any way you need to speak up. The truth is that many mortgages written in the past three to four years were bad adjustable or non conventional investments and consequently banks and mortgage lenders want to get rid of them.
In paragraph three of your financial hardship letter you will need to discuss the market and your expenses. Explain where your property is located and the bad condition of the market there. Mention how much the cost of the tax and maintenance of your property has increased and if you owe more than the property is worth say so.
The fourth paragraph of your hardship letter to stop foreclosure should explain what has impacted your ability to keep up with your mortgage. The reasons could include job loss, divorce, illness, a demotion or anything that has had a negative impact on your financial circumstances. Resist the urge to write anything negative or bitter in this paragraph and do not blame anybody else for your situation.
With mortgage hardship letters the fifth and final paragraph should be a recap of the first in that it explains that you can no longer pay your mortgage and are preparing for foreclosure and bankruptcy. You should also explain that you are looking for a solution and ask for help. If you want to stay in your home say so here. Similarly if you think the only solution is a short sale then speak up. Finally express your gratitude that someone at the bank has taken the time to read your letter. Do not forget to include your signature and the date.
When writing mortgage hardship letters some people copy and paste examples from the internet. Never do this because you want the person who reads your letter to see your difficulty as being unique to you. Instead do your research in order to get an idea of how to write effective mortgage hardship letters.