How to Write a Forbearance Letter

Requesting a mortgage forbearance from your mortgage company can help you avoid a foreclosure. Forbearance approvals can either suspend home loan payments for several months or result in a reduced monthly payment. But before your lender approves the request, you'll have to submit a forbearance letter, also known as a hardship letter.

Instructions

1. Explain why you need mortgage help. Lenders take the severity of your situation into consideration before approving your forbearance request. Be specific in your plea for help. Include in your forbearance or hardship letter the reason why you can't keep up with payments -- loss of employment, sickness, divorce, injury or other personal issues. Provide dates with regards to job termination, name your particular illness and offer other specific details.

2. Include information on your current financial situation. Lenders need information on your present financial standing. Disclose financial information in your forbearance or hardship letter, including your monthly earned income, house payment, debt payments and other bills. Include information on bank balances and other assets.

3. Offer a solution. Mortgage lenders are open to suggestions. Are you looking for a suspension of payments or a payment decrease? Estimate how long you'll need forbearance help for a temporary problem -- one month, three months or six months. If you need a short-term reduction in payment, include information on how much you can realistically afford to spend each month.

4. Write an honest account of your situation, but don't falsify information. Lenders will conduct their own investigation to verify your claims. Exaggerating your situation or including false information can result in a forbearance denial.

References

• Bank of America: Forbearance
• Bankrate.com; What You Need to Get Foreclosure Help; Holden Lewis; March 2008