Once you have missed out any of the mortgage payments the first communication you have with the bank is the hardship letter. This forms the basis of your future negotiations with the bank or the mortgage company.
Here are some key points that would help you draft an effective hardship letter:
· Write it in a very neat in tidy way. In case your hand writing is not good, get it typed.
· It must have your complete contact details that are the name, contact number, email address, phone number, etc.
· Make sure that you send the letter before the lender signs the ‘Notice of Default.’
· It must comprise of the loan number.
· In terms of the financial details the letter comprises of the details of your income, the expenses, the reason of lapse in the payments, etc.
· When you submit the letter, it should have all the proofs of the financial details mentioned. These mainly include your credit card bills, the bank statements, the tax returns etc.
· Send the letter through a registered mail service and have the receipt of receiving by all means.
· Contact the bank’s loan modification department once you are sure that the mail must have reached there or you have got the receipt of receiving.
Given below is sample format of the hardship letter:
Lending bank’s name
Address
Area with city code
Borrower’s name
Address
Contact No.
Fax No.
Email
Co- Borrower’s name
Address
Contact No.
Fax No.
Email
Loan No. ………. Loan Modification
Sir,
I hereby apologize for not making the payments. I could not do so as …………. (the reason)
My current income details:
My monthly expenses details:
The debt income ratio:
I shall look forward to a prompt reply as I am desperate to save my home and get a loan modification.
Regards
Borrower’s name
Signature
Contact No.
Fax No.
Email
so, just try it.. something gonna be smooth when also do in smooth…