Not everyone’s circumstances allow them to pay off a mortgage fully. At times, unforeseen circumstances can have devastating effects on our ability to keep our mortgage payments current – recession, layoffs, medical issues and expenses associated with divorce are some of the common reasons for not being able to pay back mortgage loans.
In such a situation, applying for a short sale is the best way of staying afloat. Writing a mortgage hardship letter is an effective way of communicating your problem to the mortgage company and asking for advice. Since none of us like filing for bankruptcy (which will eventually show up on our credit history), applying for short sale is the best way of getting out of a situation such as this.
A mortgage hardship letter written for the purpose of short sale needs to detail why you have decided to take this step. Giving as much information as possible will make sure that the mortgage lender understands your problem clearly and grants you what you are ideally looking for. It is best to take ideas from a mortgage hardship letter example such as the one given below:
January 14, 2015
Mr. David Hunter
Bayview Loaning Services
88 Pitts Road
Epsom, NH 71635
Dear Mr. Hunter:
As you are aware, I purchased my house (33 Hall Road #1, Epsom, NH) six years ago and have been paying back the mortgage ever since. I have been diligently conforming to the annual 10% rise in monthly mortgage payment and have not yet fallen back on a payment. Unfortunately, a recent setback is making it impossible for me to determine how to pay back the rest of the mortgage.
Owing to the terrible recession that the country is experiencing, my current employer is closing his company and I will not have a job till the end of February. While I am doing all, that I possibly can, to obtain another job, the chances are somewhat grim in the industry that I specialize in.
In the past couple of years, my house has lost 45% of its value and this has made it impossible for me to refinance it. It is my prime focus to avoid foreclosure at this time and would like to discuss the possibility of a short sale approval. I have enclosed copies of my financial statements and unpaid credit card and car bills so that you can gauge the level of difficulty I am in at this time. You can contact my realtor Global Realtors at (333) 333-3333 if you have any questions, answering which may help my case along.
I would appreciate any effort you can make to help me through this problem. I state that all the information that I have provided in this letter is true.
Mortgage #: 32955-B
Tel: (888) 888-8888