Mortgage lenders like the Hardship Letters to include everything that happened to cause the delinquency (the hardship) and when and how the hardship(s) was resolved.

One of the numerous things we offer our clients is a Hardship Explanation Outline, a copy of which follows – with the idea in mind of helping those who would like assistance with writing their Hardship Letter.

HARDSHIP EXPLANATION OUTLINE

Explain the “hardship” that caused your delinquency and explain what has occurred or what you have done to better your situation. Please include dates that the hardship(s) occurred and when the hardship(s) was resolved. Remember anything you say in the Hardship Explanation Letter about what caused your delinquency may need to be verified later, so please hold onto any verification of the hardship you may have.

If you have increased income by any means what-so-ever, including but not limited to part-time work, getting a boarder or roommate, receiving overtime at work or you have increased income by any other means, please be sure to mention it in the Hardship Explanation Letter.

Please explain all expenses you have eliminated, cut back on or have cut off, for example, cut off cable TV, cut off cell phones, eliminated outside entertainment, no more long distance phone calls, cut back on groceries by bagging lunches instead of eating out, cut back on dry cleaning, have reduced utility expenses, no more pay-per-view cable TV, movies or any thing else that you can think of that will save money to help you get back on your feet.

Please explain that these actions have allowed you to create a budget, which allows for all bills to be paid in a timely manner and still allow for savings (in your own words, please). (REMEMBER – LENDERS LIKE TO SEE “SACRIFICE”)

If you have gone or are scheduled to go to a budgeting class to help with budgeting or have gone or are scheduled to go to a credit counseling company that specializes in helping reduce credit card debt and/or unsecured debt, please be sure to mention that in the Hardship Explanation Letter as well.

If you have owned your home for some time, you may want to mention how long you have owned it.

Explain how important your home is to you and your family and mention your concern for your children’s welfare and safety (if you have children).

Explain how hard you worked to buy your home and how hard you are willing to work to keep your home.

Explain how confident you are in your ability to now maintain your mortgage payments, if they just work it out with you.

Thank them for their consideration and be sure to SIGN AND DATE the Hardship Explanation Letter.

DO NOT MISREPRESENT.
DO NOT OVER EXAGGERATE.
TELL IT HOW IT IS.

IF YOU HAVE ELIMINATED OR CUT BACK AN EXPENSE
SAY SO – IF NOT – DON’T.

Good luck.