- 1). Explain the reason you are writing the hardship letter:
Example:
We love our home, but due to the circumstances described below we are not able to keep up with our required mortgage payments. - 2). Describe the circumstances that cause your hardship.
Examples for hardships:
- Job loss
- Reduced salary/pay
- Job transfer
- Illness
- Medical Bills
- Divorce
Be as specific as you can. You want your lender to accept a possible loss. Be honest, open and thorough. Give the lender the feeling that you 'have your act together'. - 3). Provide financial information.
Usually a lender asks last years W-2 or tax return as well as the most recent paystubs (last 2 is common).
In most cases it is also necessary to provide details about your monthly expenses to paint the financial picture that will help the lender to make a decision. List all expenses you have. Don't hold back, it will help to know what you spend and where you may be able to save expenses to afford a new payment proposed by the lender. - 4). Describe steps you have taken to solve your situation (no matter, if successful or not).
Examples:
- Have you searched for a new job?
- Have you talked to a counselor?
- Are you already cutting back on your expenses?
- Have you explored additional income sources?
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