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What is a Hardship Letter?

A hardship letter is a letter people write to lenders, like Chicago mortgage companies, where they explain their financial situation and the circumstances that led to the difficulties experienced, and basically, why they deserve help with their difficult financial situation. This letter should be backed up by the necessary paperwork that is needed, to prove claims made.

Often hardship letters are written when loan recipients hit a rough patch in life. Some of the common reasons people give when requesting short sales, loan modifications, or delay in payments are lost jobs, divorces, deaths in the family, or medical emergencies. The hardship letter can be written for any reason that causes one to be unable to afford payment to a current loan.

Lenders and Chicago mortgage companies require that a hardship letter be handwritten. However, before one writes a hardship letter, they must first secure certain information that needs to be included in the letter, like: name, address, loan information, account number, and employment information (indicate if not employed).

Below are several tips on how to write a hardship letter that will get the attention of your Chicago mortgage company:

Show Intent to Help Self

There are many who want to get help, that means the hardship letter writer will have to compete with many others for the attention of mortgage companies. The best way to do this is to include in the letter details on the actions taken to help one’s self improve their financial situation. This will show lenders that the applicant is responsible and deserving of assistance.

Do not Assume the Lender Knows You

One thing applicants should remember is that lenders or mortgage companies in Chicago will have to check or verify your claims, and more importantly, who you are. Thus, give information to identify yourself properly and list the loan number, loan balance, co-borrowers, etc. to expedite this process.

Letter Should be Handwritten

There is a reason for this requirement – a hardship letter must come from the borrower themselves. If it is handwritten, it would dispel fears that the letter was written by identity thieves or for fraudulent means (which is very common via the Internet). Also, the letter being handwritten shows your genuine and heartfelt need for assistance.

Show Reason for Asking Help

To convince Chicago lenders or mortgage companies that one deserves a break, a hardship letter must contain the specific information and details that serve to support one’s case. Failing to mention certain information or watering down details could backfire, and result in a request being denied. Of course, one must also be careful about volunteering too much information, as there are details one does not have to share—like the fact that one stands to inherit thousands of dollars from a family member who just died.

Show Proof

One cannot just claim hardship. To convince mortgage companies to grant one’s request for a short sale, loan modification, or payment delay one must back claims with evidence. That means showing pay stubs, checking account statements, or proving evidence of loss of income or job. All information should be correct and properly dated.

As with writing any letter, it is vital that one shows respect and courtesy all the time. A hardship letter that is to the point, informative, and cordial will always be appreciated by Chicago mortgage companies.