Add effect in the Hardship Letter

Aug 6th, 2022
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How to add effect in the Hardship Letter

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okay if youre watching this video im going to assume that you just watched the video about the general hardship reasons and you kind of have an idea as to what hardship region reason youre going to use in your hardship letter um this is a really specific purpose of this video and its to let you know that whatever you tell the bank your hardship reason is you need to connect your financial hardship to the date you defaulted um so on it sounds simple when you say it right there are very straightforward examples lets say you lose your job in may and then june 1st you default because you werent able to bring in the same amount of money thats straightforward so if you tell the bank i defaulted on my mortgage because in may i lost my job and in june i missed my payment thats fully connected the bank will definitely see that thats connected and there will be no issue the problem is that its often not that straightforward sometimes people have a financial hardship that occurs and the

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Dont say that your situation is your lenders fault or that their employees are jerks. Dont state that things will likely turn around for you. If the lender thinks you might soon have the financial means to repay part of the debt, you might not be approved for loss mitigation.
Whether its not getting a job, experiencing a breakup, losing a loved one, or facing a health complication, adversity is something no one can avoid. Without any adversity, life would be one straight and flat boring journey that prevents us from growing.
Because of this unforeseen circumstance and loss of income, I have fallen behind on my mortgage payments and sunk into credit card debt to stay afloat. Im working with a debt counselor to come up with a budget plan to repay my monthly payments, which I think I can do with your help.
Focus only what has currently happened and how that has impacted your ability to make the payments. List what you have done to try to resolve the hardship. For example, you reduced your expenses, picked up a second job, etc. Explain why you need help from the lender to avoid default.
Examples of hardship letters will include an explanation of financial situations to credit card issuers, banks, or lenders and a proposal of some way they can help you resume regular loan repayment. Hardship letters can be a crucial part of your debt resolution.
Your hardship letter should include the following essential steps: Write an introduction. Detail your hardship. Highlight how youre being proactive about your financial situation. State your request. Provide assurance of financial recovery. Submit supporting documentation.
As a Federal Employee my income has been reduced by 20% per pay period. I am now experiencing financial hardship due reduced income. Because my income has dropped considerably I can no longer afford the terms of the original loan.

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