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Hardship Letter - Negotiator Review
[October 2, 2008] by Foreclosure Help
Filed under: hardship letter

The hardship letter is a written statement from a homeowner explaining why he/she has defaulted on the mortgage payment. As an employee in the loss mitigation department the review process is to evaluate the hardship letter and valadate the information on the letter. There are often discrepencies between what appears on the hardship letter, credit report, and other financial data received from a homeowner.

As a negotiator the Loss Mitigation Package, Workout Package are pieced together to evaluate a homeowners request for foreclosure assistance or loan modification assistance. The most important aspect of validating the information contained in the hardship letter is having documentation to support the claim of hardship. Details of the impact of unemployment or illness are required. Supporting documentation is requested from the homeowner. A statement froma doctor, specifics with regard to how an incident had a financial impact on a customer are examples of teh detail and documentation required in order complete a loan workout or loan modification.

Questions asked in the mind of a negotiator:

when did the loan become delinquent
how were payments made from the time of unemployment to when the loan became delinquent.

These are critical steps to better understand how a negotiator reviews a hardship letter.

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One Response to “Hardship Letter - Negotiator Review”

Hardship Letter Says:
October 3rd, 2008 at 2:41 am
A Hardship letter is a written statement explaining the mortgage is in default and is required by all mortgage companies in order to qualify for any type of loss mitigation. If you do not have a valid hardship you will not be considered for a plan to stop foreclosure. A hardship letter is your chance to explain in detail what hardship you have and in your life to make you fall behind in payments. Another term that the mortgage company used is a RFD (Reason for Default).

One Response to “Hardship Letter - Negotiator Review”

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