A financial hardship letter is one that explains to a bank or financial institution a homeowner's failing financial situation. Properly written it will help with a remediation plan from the lender in order to maintain the family in the home.
Here's another consideration about financial hardship...
Just think of the hundreds of applications for loan modification or debt relief that a loss mitigator gets on his or her desk in a month. The purpose of your letter is to bring your story up front and memorable. In this way your circumstance can be addressed in the quickest possible time.
The vital action in getting a federally-sponsored loan modification program is to bring your financial hardship letter to the lender's agent before the house is foreclosed. Writing the letter isn't very difficult but getting all the relevant information in the letter, it is necessary for the borrower have all the key ingredients. Loss mitigators, the lenders' representatives, usually have large case loads to review so though there are parts missing then the application needs to be returned and it'll take another month or more before it gets reviewed again.
This letter is just part of the packet for loan modification. However, the job of a loss mitigator isn't to show you how to prepare a financial hardship letter. This is up to you and it's much to important to be left to chance.
Another reason for a financial hardship letter is for admission to a college because of financial difficulties or help with your medical bills.
Subject Line Clarity-The loss mitigator has to know your specific request. In this way the charter will be read by the very person, the one who'll be in a position to help you.
Be Humble-The person who'll read your financial hardship letter was not responsible for your current situation but they're there to help. Therefore be thankful and humble in your tone.
The letter is an important tool for relief from a financial difficulty. When you think of how much importance is packed into a pair of sheets of paper you'll make your letter a priority.