Skip to main content

Guide to Writing Financial Hardship Letter

A financial hardship letter is one that is written to a bank or financial institution to explain a person's financial troubles and to ask that creditor for a remediation plan in order to keep a home from being repossessed for non-payment. In fact think of a financial hardship letter as an attorney for the defense as you plead your case to the bank's loss mitigator and explain why you should be allowed to stay in your home.

Facing the prospect of moving out of your family home is a scary thought. In many cases the homeowner has spent years in the home raising a family and making his or her mark on that structure. To lose it and make the children leave their friends and schools is heartbreaking. A hardship letter explains this point as well as what you will do to help your cause. Do you have a plan? Is there any prospect for a better job?

Why should you spend s much time on a letter? Think of it this way: A loss mitigation for a bank is probably tasked with a two to three hundred cases. Just imagine reading that many letters. It's a daunting task and so for you to get quick results and not be mired in with a few hundred possibilities you have to make your letter rise above the pack.

The main points for a financial hardship letter are:

  1. Subject Line Request - Right off the bat let the loss mitigator know what you are requesting.
  2. Brevity - Don't let your financial hardship letter go on for page after page. Keep it as short as possible.
  3. Personal - Let the loss mitigator get to know you and your circumstances.
  4. Clarity - Get your points across in the clearest possible way and then provide a summary.
  5. Information - Make sure you leave nothing out of your letter. Attach important information such as bank statements, cash flow documents, income tax statements, letters of reference, etc.
  6. Be Appreciative - The person reading this letter did not get you into this mess but he or she is the one that can help you out of it. So be thankful and humble in your tone.

The financial hardship letter is not the only tool in your chest for a financial reprieve but it is by far one of the most important. So make it your prime instrument when dealing with the bank and get it in soon.
Labels:

Comments

Post a Comment

Popular posts from this blog

Recommendation Letter Writing Tips

When writing a letter of recommendation from your goal should be to provide a fair trial, but positive for the applicant's skills, character and qualities. Before starting to write a letter of recommendation , take some time and plan what you mean. Here are some tips to make your task easier. Please indicate your relationship to the applicant Start the letter explaining how you know the applicant. Is important. If you are not familiar with the applicant, not supposed to write a letter of recommendation from her. What type of relationship with the applicant - personal or professional? Why do you think this applicant stands out from the rest of his caliber? You must also state your qualifications for writing the letter of recommendation . List the skills of the applicant Once explained his relationship with the applicant, which should list the applicant's skills and qualifications that make you a suitable candidate for the position you have applied for. Write ...
3 comments
Read more

How to Write a Good Family Reunion Invitation Letter

Family reunions are wonderful occasions for far-flung clans or those family members who haven't met yet. Writing a reunion letter is an important step in setting up such a major event. The letter gives family members essential reunion details vital to their planning. A good letter, according to the website Family Reunion, will be informative and to the point. Be engaging and kind, but be clear. 1. Open a word document and begin formatting the letter. Be somewhat formal; for example, write "Smith Family Reunion Invitation" on the top in a large, bold font. Skip a line and start by clearly stating your intentions. Some family members who haven't heard from one another in some time may be startled, according to Family Reunion. Don't write, "I was thinking we should get together." Instead, try, "It is my pleasure to invite you to the Smith family reunion, which will be held Sept. 18, 2010, at the Royal Hall in Brooklyn, New York." This will...
Post a Comment
Read more

Business Letter Format

Your Address The return address of the sender so the recipient can easily find out where to send a reply to. Skip a line between your address and the date. Date Put the date on which the letter was written in the format Month Day Year i.e. August 30, 2003. Skip a line between the date and the inside address. Inside Address The address of the person you are writing to along with the name of the recipient, their title and company name, if you are not sure who the letter should be addressed to either leave it blank, but try to put in a title, i.e. "Director of Human Resources". Skip a line between the date and the salutation. Salutation Dear Ms./Mrs./Mr. Last Name:, Dear Director of Department Name: or To Whom It May Concern: if recipient's name is unknown. Note that there is a colon after the salutation. Skip a line between the salutation and the subject line or body. Subject Line Makes it easier for the recipient to find out what the letter is about. Skip a ...
Post a Comment
Read more