UTAH REAL ESTATE INVESTOR

John and Jane Homeowner
123 Myplace Avenue
Anytown, State 12345

Bob Lender
My Understanding Lender Company
456 Overthere Lane
Sometown, State 12345

Current Date

RE: Loan #(your loan number) for property at (address of property)

Dear Mr. Lender,

We are contacting you today to explain the circumstances which have caused us to become delinquent on our mortgage payments. Although we have done everything possible to improve our financial situation, we are still short on the money owed to you. We would greatly appreciate the opportunity to obtain a (proposed outcome).

The main reason we have become delinquent in our mortgage payments is (explain the reason here).

Our circumstances have (or have not) changed. As of (applicable date) we have (describe your change in conditions). At this time we do not have enough income to pay our regular monthly mortgage payment and all of the accumulated payments and fee. We truly want to pay what is owed, but at this time do not know how to accomplish this. Therefore, we are turning to you for assistance.

We are asking for (propsed outcome). Doing so, would help us get back on track. Our home means a great deal to us and we desire to work with you to keep it out of foreclosure. Please advise us of all options available to stop foreclosure (or initiate a short sale) at your earliest convenience. We are anxious to reach an agreement and appreciate your prompt response.

Respectfully yours,

Print name of Borrowers
Signature of Borrowers
Loan #
Phone
Email addresses (if applicable)

The following items are important and need to be included in your hardship letter:
• Date
• Loan Number
• Reason for Default
• Supporting evidence and documentation
- Event details
- Date of events
• Documents supporting end of hardship (if applicable)
• Your proposed outcome (what you would like to happen)

The following is a list of valid reasons for hardship that would be accepted by most lenders:
• Death of borrower
• Death of spouse or family member
• Illness• Medical Bills
• Short-term or permanent disability
• Unemployment
• Decrease in working hours
• Decline in earning for self employment
• Elimination of overtime or second job
• Mandatory pay reduction
• Increase of expenses due to short-term unemployment
• Involuntary job relocation
• Failure of business
• Divorce
• Marital Separation
• Incarceration
• Military Duty
• Damage to Property

When writing your hardship letter make sure that you honestly represent the facts as you may be asked for supporting documentation to verify your claims. Include all of the things you have done to be responsible for your loan obligations. For example:
• Created family budget
• Seeking credit counseling
• Reduced bills & recurring expenses
• Secured new employment
• Secured additional employment
• Used savings
• Borrowed or closed retirement accounts
• Increased education (more employable)
• Sold large assets
- 2nd car
- Jewlery
• Stocks, bonds, mutual funds
• Cancelled luxury subscriptions
- Magazines
- Cable TV, Internet
• Exhausted other means to pay debt

(Click here to see examples of some hardship letters)