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A hardship letter for foreclosure prevention is a written explanation of a borrower’s financial difficulties and the reasons they are unable to make their mortgage payments.
The letter is typically included with a request for a loan modification, a repayment plan, or a forbearance agreement, which are all options to help the borrower avoid foreclosure.
Here is an example of a hardship letter for foreclosure prevention:

Sample 1 - Hardship Letter for Foreclosure Prevention
[Your Name]
[Your Address]
[City, State ZIP Code]
[Email Address]
[Phone Number]
[Date]
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[Lender’s Name]
[Lender’s Address]
[City, State ZIP Code]
Dear [Lender’s Name],
I am writing to request your assistance in preventing foreclosure on my home at [property address]. I have recently experienced a significant hardship that has made it difficult for me to make my mortgage payments on time.
The hardship I have experienced is [briefly describe your hardship, such as loss of job, medical bills, divorce, etc.]. As a result, my income has been greatly reduced, and I am unable to continue making my mortgage payments as they are currently structured.
I am currently working with [name of organization/agency if applicable] to address this hardship and find a solution to my financial situation. However, I am unable to bring my mortgage payments current without assistance.
I am willing to explore all options to prevent foreclosure, including a loan modification, a repayment plan, or a forbearance agreement. I understand that this may require a change to the terms of my loan, such as an extension of the loan term or a reduction in the interest rate.
I have attached all the necessary documents such as paystubs, bank statements, etc.. to support my request. I am willing to provide any additional information or documentation that may be required.
I am committed to making my mortgage payments on time and keeping my home. I would greatly appreciate your consideration of my request for assistance in preventing foreclosure.
Thank you for your time and consideration.
Sincerely,
[Your Name]
Sample 2 - Hardship Letter for Foreclosure Prevention
[Your Name]
[Your Address]
[City, State ZIP Code]
[Email Address]
[Phone Number]
[Date]
[Lender’s Name]
[Lender’s Address]
[City, State ZIP Code]
Dear [Lender’s Name],
I am writing to request your assistance in preventing foreclosure on my home at [property address]. I have recently experienced a significant hardship that has made it difficult for me to make my mortgage payments on time.
The hardship I have experienced is [briefly describe your hardship, such as loss of job, medical bills, divorce, etc.]. As a result, my income has been greatly reduced, and I am unable to continue making my mortgage payments as they are currently structured.
I am currently working with [name of organization/agency if applicable] to address this hardship and find a solution to my financial situation. However, I am unable to bring my mortgage payments current without assistance.
I am willing to explore all options to prevent foreclosure, including a loan modification, a repayment plan, or a forbearance agreement. I am willing to provide any additional information or documentation that may be required.
I am committed to making my mortgage payments on time and keeping my home. I would greatly appreciate your consideration of my request for assistance in preventing foreclosure.
Thank you for your time and consideration.
Sincerely,
[Your Name]
Frequently Asked Questions (FAQs)
1. What is a hardship letter for foreclosure prevention?
Answer: A hardship letter for foreclosure prevention is a written explanation of a borrower’s financial difficulties that have led to their inability to make mortgage payments. It is used to request a loan modification or other form of foreclosure prevention from the lender.
2. What should be included in a hardship letter?
Answer: A hardship letter should include a detailed explanation of the financial difficulties that led to the borrower’s inability to make mortgage payments, such as job loss, medical expenses, or a reduction in income.
It should also include any steps the borrower has taken to address the situation and any documents that support their claims.
3. How do I write a hardship letter for foreclosure prevention?
Answer: When writing a hardship letter for foreclosure prevention, it is important to be honest and specific about the financial difficulties that have led to the inability to make mortgage payments.
The letter should be well-organized and easy to understand. It is also important to include any documents that support the claims made in the letter, such as pay stubs or medical bills.
4. What are some examples of financial difficulties that may be included in a hardship letter?
Answer: Examples of financial difficulties that may be included in a hardship letter include: job loss, reduction in income, medical expenses, divorce, death of a spouse, or unexpected expenses.
5. Is a hardship letter for foreclosure prevention guaranteed to prevent foreclosure?
Answer: A hardship letter for foreclosure prevention is not guaranteed to prevent foreclosure. However, it can be an important step in the process of requesting a loan modification or other form of foreclosure prevention from the lender.
The lender will review the letter and any supporting documents and make a decision based on the information provided.