Clean up code in the Hardship Letter

Aug 6th, 2022
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How to clean up code in the Hardship Letter

4.7 out of 5
47 votes

hey guys so this uh video applies you know if youre sending in a hardship letter especially if you have an fha loan and youre trying to apply for a modification or a short sale uh oftentimes the investor through the servicers will require whats called proof of hardship so sometimes depending on your bank your servicer and your investor it will be enough to just send in a hardship letter and tell them hey heres my hardship theyll believe you you know and theyll move forward other times ill ask for you to submit some proof in addition to submitting your hardship letter and so the purpose of this video is to just kind of walk through proof because proof can be a lot more broad than i think the lenders make clear so if youre using the hardship reason of job loss which we talked about in our other video if you havent watched the hardship reasons yet watch that but if youre using job loss these are various things that can provide proof that you lost your job obviously a termination

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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.
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.
How to Write a Hardship Letter Explain Your Hardship. Provide Documentation to Back Up Your Claim. List Steps Youve Taken to Alleviate Your Financial Burden. Clearly State Your Request. State Your Commitment to Paying Your Debt. Financial Hardship Letter Template + Sample.
Explain your current situation. Tell them your family income is reduced and you are not able to keep up with your payments. Frankly discuss your future income prospects so you and your creditors can figure out solutions to the problem.
To Whom It May Concern: I am writing to ask for your assistance. On February 1, my hours at work were cut in half, and my salary was reduced from $2,400 a month to $1,200 a month. Enclosed is a copy of my most recent paystub, which shows my reduced hours and salary.
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.
You are in financial hardship if you have difficulty paying your bills and repayments on your loans and debts when they are due. Under credit law you have rights when you are in financial hardship .

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