If you are unable to make your mortgage payments, you might qualify for a loan workout option, which may involve reduced or suspended payments. Most mortgage companies require a hardship letter before the will consider you for this option. Hardship letters provide you with an opportunity to appeal to the mortgage company and convince the lender to give you another chance.
Place your name, address, mortgage holder and loan number at the very top of the document to make it easier for your reviewer(s) to know exactly who you are. For example:
Susan Smith 123 Main St., Sunnyvale, CA 12345 Best Ever Mortgage Company
Loan No.: 123456-2134
Create an opening statement that is brief and to the point. Do not ramble or beat around the bush here. For example: I am requesting that you review my financial situation to determine if I qualify for a workout option.
Explain why your financial difficulties have prevented you from making your loan payments on time. Do this clearly and succinctly; you will provide more in depth explanations later.
Note when the financial difficulty first began and whether you believe it is permanent or temporary. If permanent, the mortgage company may not be able to work with you.
Begin a new paragraph and explain the details of your situation clearly. Use detail, but be as brief as possible. For example: I lost my job due to business failure in January, and was unemployed for several months. The money I had in savings was not enough to cover the mortgage and living expenses.
Provide an oath of truth, followed by your signature and the date. This is standard practice for all financial hardship letters. For example: I, Susan Smith, state that the information provided above is true and correct to the best of my knowledge.
If you have a co-borrower, place his name and signature below yours.
Be honest and sincere in your letter, and be sure to state exactly what you are asking of your lender.
Be prepared to prove that the situation that made you fall behind in payments was only temporary and that you can again make your payments on time.
Never complain about the mortgage company in hardship letters, as this could result in a quick denial. Take responsibility for your actions, and prove that you are worth another chance.