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Writing A Hardship Letter To Your Bank In Florida
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Writing A Hardship Letter to Your Bank In Florida

If you’re considering a loan modification, short sale, or a deed in lieu of foreclosure then you may know a little bit about the application process. Working with a Foreclosure Attorney is always recommended because they can guide you through the process, but for anyone that is trying the process on their own, you will encounter several steps that challenge you. One part of the application process that many people have a hard time with is writing a hardship letter to your lender, since it is required by basically every bank.

What is a Hardship Letter?

A hardship letter is a written statement explaining to the bank what has caused you to fall short of your mortgage obligations and why you need the modification, short sale, or deed in lieu. It is really your only chance to explain to the bank why they should help you, so it is very important to write a quality hardship letter in order to give you the best chance for getting your application approved. If you are struggling with the letter or any part of the process, a foreclosure attorney can help.

Hardship Letter Basics

The most important part of the hardship letter is describing what exactly your hardship is/was and how it impacted you financially. A hardship is considered any decrease in income or increase in expenses that makes it difficult to meet your monthly expenses and cover your basic necessities. A few examples of hardships include losing a job, taking a pay cut, relocation, death of a spouse, medical or repair bills. It is important to include the date that the hardship began and how long you expect it to last or how long it did last before you were able to improve your situation.

After describing the hardship, the next step is to explain what steps you have taken to improve your situation and make ends meet. Whether you have attempted to cut costs, adjust your budget, or acquired additional monthly income, you need to let your lender know that you have tried adjusting your lifestyle to your situation before asking them for help.

The last part of the hardship letter is your plea for their help. You should tell them what your intention is, whether it is to keep your home, sell it, or turn it over in a deed in lieu and what they can do to help you accomplish that. Remember that you are asking for their assistance, not begging for their pity or complaining about how difficult your life is. A foreclosure attorney will have experience working with banks and hardship letters and will be able to help you get the necessary information into the letter.

How to Write the Hardship Letter

A loan modification hardship letter (short sale and deed in lieu letters are basically the same) is a basically a letter asking your lender for a favor by allowing you to alter the terms of a contract that you signed with them involving a large amount of money. For this reason, you need to remain respectful and honest in your pledge for their help. The letter will be accompanied by financial documents that will give your lender a complete understanding of your financial situation, so lying about your income, expenses, or money you have in a bank account will easily be detected by them. You also want to speak professionally and respectfully, and avoid being too dramatic about your situation.

Try and keep your hardship letter detailed, yet to the point. The letter should be about one page, with two pages being the maximum. The person reading your letter should be able to easily understand what your hardship was and what you are asking of them, without sifting through a lengthy story or account of what happened. Also, don’t forget to sign and date the hardship letter when you are finished writing it.

A well written hardship letter can be a key part of the application and a tremendous aide in getting your loan modification, short sale, or deed in lieu of foreclosure approved. While applying for one of these foreclosure alternatives is possible to do on your own, dealing with the bank can be difficult so working with a foreclosure attorney is recommended. Keep in mind that the banks have teams of lawyers and personnel working to get money from you, so taking them on all by yourself is a daunting task.


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