Guiding You Through Your Important Legal Needs

3 things that should be included in a mortgage hardship letter

On Behalf of | Aug 9, 2023 | Debt Relief

When you are unable to manage your financial obligations, you may feel as if you will never be able to escape this situation on your own. Falling behind on your payments can result in an unmanageable debt burden that you are not able to correct on your own. Ultimately, this could lead to the possibility of losing your home, garnishment of your wages and other consequences. If you are not able to make your mortgage payments, you are facing the very real threat of losing your Pennsylvania home. 

Thankfully, there are steps you can take that will allow you to reclaim your control over your financial situation. Through various legal options and more, you may be able to deal with your debt or create some breathing room that will allow you to move forward to a better future. One option you may have is drafting a mortgage hardship letter. 

The details of a hardship letter

If you are no longer able to make your mortgage payments, there are various options available to you. One choice that you may have is to write a mortgage hardship letter. This is a letter that you will send to your creditors that may help you while you are in a difficult financial situation. In this letter, you will need to describe your circumstances and provide evidence of your inability to make your mortgage payments. The letter should explain why you cannot keep up, and some of the important details you will want to include are: 

  • The date that your financial hardship began 
  • The cause of your financial hardship 
  • How long you expect the financial hardship to last 

In your letter, you can explain what you want the lender to do to help you. You may also explain how your proposed solution can be helpful and provide you with what you need to eventually resume your payments as normal.  

Options for debt relief 

A hardship letter may not always be successful, but it is possible that this could help you regain control of your financial situation. This effort may be helpful by securing lower interest rates, a more favorable agreement, lower payments or other benefit. By taking this step, you may be able to avoid other debt solution methods, such as bankruptcy. However, bankruptcy is often a reasonable choice for those who are facing foreclosure due to defaulting on their mortgage.