Suppose you’re unable to keep up with your mortgage payments. In that case, your lender will contact you to suggest some loss mitigation options to help you stay on track with your payment. You do not want to underestimate your lender’s quest to make money. If they can’t see why you’re missing your payment, they will foreclose your home to have their money back. You do not want that to happen; you can make them understand your situation and how they can help you by writing a hardship letter. Even if you’re going to negotiate a loss mitigation alternative, a hardship letter will be required as part of the document you submit. So how do you go about it?

Chances are you already talk with family and friends about your financial difficulties and what lead to it. All you need to do is put it in writing, only that you’re not expecting sympathy in return but an offer that will help you stop foreclosure. Consider the following tips while writing your hardship letter:

• Discuss circumstances leading to your financial difficulties in the opening paragraph.
• State how you plan to end the period of hardship and the steps your taking currently.
• Let your lender know about your plan for the house, whether you want to keep it or sell it.
• State your request or propose loss mitigation that you see fit for your situation.
• Make sure to write in a formal tone. You’re writing to an organization, not a friend.
• Make sure the letter is sent to the appropriate quarters, usually the loss mitigation department of your lender.

You can search online for samples of hardships write for different purposes. The mistake most homeowners make is that they fail to edit the samples correctly, they copy and paste, and the consequence is the sale of their home. After you’ve written the letter, have one or two people proofread it for you, this is to help you point out errors you might have missed.