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Sample Hardship Letter TemplateHow to Write a Hardship Letter to your mortgage company"Need Help? ..keep reading "
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First of all, What is a hardship letter template? A hardship letter template is a guide to assist you in writing your own qualified written request to comply with Section 6 of the Real Estate Settlement Procedures Act (RESPA). A hardship letter is one of the things your lender will ask for during the loan rework or loan modification process.It is technically referred to as a "qualified written request". A hardship letter is an explanation in writing as to what “life event” has caused you to fall behind on your mortgage payments and it is necessary in helping you avoid foreclosure. This letter acts much like summary of your current “real life” issues that are affecting your ability to make your mortgage payments. Please keep in mind while your are writing the hardship letter that because of the foreclosure crisis, lenders are extremely busy and back logged. So, with this in mind, Keep your hardship letter short, factual, and to the point. Usually 1 or 2 pages is more than enough to get your point across. Examples of hardships that lenders might consider during the loan modification loan rework process:Sample Hardship Letters* Divorce * Marital Separation * Military Duty * Reduced Income * Medical Bills * Adjustable Rate Mortgage Reset- Payment Shock * Job Relocation * Death of Spouse or Co-Borrower * Incarceration * Illness * Loss of Job * Reduced Income * Failed Business * Damage to Property (unnatural or natural disaster) * Other life events (Please Specify) Now that you have some idea of what your lender is looking for, it’s time to learn how to write a hardship letter. We made it easy for you by giving you a hardship letter template below that you can use as a guide for your own letter. Make sure you make it unique to your situation. But remember, be factual and don't try to write a sob story. Possible responses to your hardship letter template* The lender may offer to remove some or all of the fees * The lender could make a loan modification offer * You could receive a reduction in the total amount you owe (the principal)—especially if you owe more than your house is worth * You could receive a temporary interest rate reduction
Questions to ask the lender during the loan modification process:Questions to ask the lender during the loan modification process: * Will my interest rate go down? If yes, will it eventually go back up? * Will my loan amount increase? If yes, how much will it go up and what fees are going to be added? * What will my new monthly payment be?
If your lender does not offer a loan modification that is acceptable, you have other options: * You may bring private action if you find that the lender used deceptive mortgage practices and/or if you suffered damages due to the lender's loan servicing practices. * If lender is not at fault and you know that you can no longer afford your home you have other options available to you that can help you avoid foreclosure. Read up on forbearance, repayment plans, short sale, and other options at loan modification Sample Hardship Letter TemplateAttention Customer Service: Subject: [Your loan number] [Your names as they appear on your loan documents] [Property and/or mailing address] This letter is to serve as a "qualified written request" under Section 6 of the Real Estate Settlement Procedures Act (RESPA). I am writing because: * Describe your situation - For example "Due to the recent adjustment to the mortgage I currently have with your company, I am finding it difficult to afford the new payment." * Describe any question you have about your loan. * Describe what you believe the lender can do to help, such as: investigate, check their accounting, make corrections. * Attach copies of any related written materials— for example: any statements from the lender indicating an increase in your principal balance, etc. * Relate any conversations you've had with customer service regarding the issue--use names of those you spoke with and the dates. * Describe any previous measures you may have taken resolve the issue. * List a day time telephone number where a customer service representative can reach you. I understand that the lender is required to acknowledge my qualified written request within 20 business days and to try and resolve the issue within 60 business days under Section 6 of RESPA. Sincerely, [Your name]
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Disclaimer The hardship letter template and other materials available at e-home-mortgage-loans.com are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at e-home-mortgage-loans.com are the opinions of the individual author and may not reflect the opinions of a law firm or any individual attorney.
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