Medical bills can add up quickly in the event of a medical emergency or serious illness. For example, after an automobile accident, the victim may require expensive surgery and possibly rehabilitation and long-term care. Insurance may cover some, but not all of the expenses. Many people don’t realize that medical debt is similar to credit card debt in that it is unsecured debt, and the amount owed can be negotiated. Sending a medical hardship letter is the way to start the process of reducing medical bills.
A loan modification hardship letter is a formal way to request a modification to a loan. This letter is the place where the borrower can express his or her financial troubles in personal terms to have the best chance to stop a foreclosure or receive better terms on an outstanding loan. Banks and other lenders don’t want to know the life history of a borrower, but they want to know that he or she has a legitimate reason for requesting help.
A short sale is a type of real estate transaction that occurs when the seller owes more money to his or her mortgage company than what the property is selling for. Typically, this occurs when a property value has declined and when the homeowner must relocate rather than wait for home values to improve. Often, the borrower is attempting to move forward with a short sale as a means to avoid foreclosure. With a short sale, the mortgage company will agree to accept less money from the homeowner than what is owed, and the company will write off the additional money that is owed. In order to move forward with a short sale, the homeowner typically must write a short sale hardship letter and submit it to a lender. Because the lender is not required to accept less money than what is owed, it is important that the short sale letter is properly formatted and explains all of the circumstances related to the sale. This will provide the homeowner with the best overall results from this request.
When you have fallen behind on your mortgage payments and are attempting to have your bank or lender work with you to reduce or delay your payments, you will be asked to provide some documentation to prove that you are experiencing difficulties. One of the most important parts of this documentation is the mortgage loan hardship letter. This is a personal letter written by you to your lender. It is meant to describe the circumstances behind your failure to pay your mortgage and to give the lender an idea of how long these circumstances will affect your ability to repay the loan.
Asking for forgiveness of a debt is one way to handle financial difficulties. A debt forgiveness letter is generally associated with home mortgages that are higher than the worth of the property. The homeowner needs to reduce his or her mortgage or get approval from the lender to sell the house short. Debt forgiveness letters can also be used to reduce credit card debt as well as other types of debt such as a car loan.