Many homeowners default on their payment dues to unforeseen circumstances that lead them to financial difficulties. Job loss, divorce, devaluation are few among many reasons that make it hard for homeowners to keep up with their mortgage payments. Medical emergencies are not left out, as well. This usually creates a temporary financial setback but can also affect your mortgage payments. Many options are available to consider to stop foreclosure. Loss mitigation is one of those options. I
Loss mitigation is the process of negotiating alternative solutions with your lender so that you can get back on track with your mortgage payments. There are many options within loss mitigation, such as:
However, one of the essential documents to process any form of loss mitigation is a hardship letter. A hardship letter is written to bring your lender to the understanding of your current situation. With a hardship letter, you can explain to your lender circumstances that led to your financial difficulties. It would be best if you also made them understand your ability to get out of the challenges and get back to making a regular payment. State in a clear tone your plans for your property and make known your request. Make sure to have carefully considered which loss mitigation alternative is best for your situation and that your lender will be willing to accept.
The hardship letter is not hard to write, as there are many templates online you can consider. However, you do not want to only copy and paste; make sure to use those samples to write your own. It should be written in a formal tone, and you should be as brief as possible. It would be best if you have two or three individuals proofread the letter for you before you forward it to your lender.