The Hardship Letter is a typed or neatly handwritten letter to your lender explaining why you are unable to meet your mortgage responsibility. For many, this is the hardest part; here are a few simple guidelines to help simplify this task:
Keep the letter brief (1 page) and to the point.
Identify how your income has changed since you took the mortgage. This could include loss of employment, reduced pay, loss of rental income, divorce, illness, caring for a family member, medical bills, increased insurance/taxes, family obligations, etc. Remember, this letter will determine whether or not you lender will accept the discounted offer! Don't forget to say that you cannot make your payments, and that you are not able to borrow from family and friends.
It is a good idea to state that you are considering bankruptcy if the offer is not accepted because you don't know what else to do.
You will also want to mention that it is your intention to sell the property and what actions you are taking to try to sell it.
Lastly, please include all repairs the property requires.
