How To Write A Hardship Letter

Anyone who has experienced a true financial hardship understands how frustrating and frightening this situation can be. When you find yourself in a position where the bills keep piling up and the phone begins to ring incessantly, you may feel there is nothing that can be done to remedy the situation. This is a common reaction and one that often puts a person in a position of not seeking assistance in satisfying their delinquent accounts.

It is important to know that most creditors, including mortgage loan servicers are interested in helping you get your accounts back in order. While they may not appear to be very accommodating and in some cases, downright unhelpful, there are some situations where a lender may work with you to get caught up on your delinquent accounts. One of the requirements needed in order to get help during a financial hardship is ..you guessed it, a hardship letter. This may be true if you are trying to settle credit card debt, qualify for a loan modification or even request financial assistance to satisfy your debt. The information contained in you hardship letter will set the tone for your application and whether or not you qualify for assistance, therefore you should put special care in the content of this important document.

If you have been asked to submit a hardship letter as part of a loan modification or some other program designed to help you get your finances back on track, it is important to understand what information is required. Despite the term “hardship” letter, you are not being asked to tell a story of woe to elicit sympathy. The hardship letter should explain the circumstances that lead to your delinquency, however there should be equal focus on the actions you have taken to remedy the situation and what steps you are taking to ensure you will not default on future loans. It is also important that you provide all the necessary documentation requested during the application process. This will expedite the process and help the people reviewing your application do so without constantly stopping to look for or request additional information. Remember, you only have one chance to make a first impression, therefore you want to have your paperwork in an orderly fashion and submitted exactly as requested. In some instances, incomplete applications will be deemed ineligible which takes you out of the running for receiving any type of assistance.

If you need help drafting a hardship letter, there are plenty of free samples found online. It has been recommend by some professionals in the industry that you should use these letters as a starting point only for drafting your own hardship letter. This makes sense as each situation is unique and you want to make sure you present your situation as honestly and completely as possible.