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  • continued from: Illinois Government Help: Three Steps to Saving Your Home

    illinois flagWriting your hard step is an important step on the road to saving your home. Many homeowners feel lost for words on what to say and how to say it. Writing an effective hardship letter is not easy but it is so important when negotiating with your lenders it is a step you cannot ignore. Lisa Madigan, AG for Illinois, provides this guidance for homeowners that are writing their first hardship letter.

    Write clearly, be brief, and address these basic questions in your letter.

    –          Why are you not covering your mortgage payments? Explain the hardship you are going through and how it is stopping you from paying your loan.

    –          Is your hardship temporary or a permanent condition? This is a key question your lender will want answered. Temporary situations include losing your job, a hefty medical bill, or an illness that has put you out of work for some time. Permanent conditions include the death of a contributing family member, a chronic health problem, and so on.

    –          How long have you been living in the house? This will help your lender assess how committed you are to your home.

    What state are you in? Please select an item.

    Behind on your mortgage payments?: Please select an item.

    Estimated mortgage balance owed? Please select an item.

    Who is your lender? A value is required.

    First Name: A value is required.

    Last Name: A value is required.

    Primary Phone Number: A value is required.

    Secondary Phone Number:

    Your Email Address: A value is required.


    –          Do you want to remain in your home? Here is where you present your case for keeping the home and explain why staying in your home is so important for you. The rate of re-defaulting on homeowners that are offered a mortgage modification is high, and the process is expensive, so lenders want to be as sure as possible you are serious about keeping your home. Include reasons why living in your house is important: your sick parents live nearby, you do not want to change your children’s school, it is your family home, and so on.

    –          If you do not want to keep your home, explain what options you are considering to pay back the loan. Is the house on sale? Will the price you are offering it at cover the mortgage balance?

    –          Explain what you have done to plan your mortgage payments. Provide a summary of your budget and explain what cuts you have made to try to pay your mortgage.

    –          Do you have savings you can include in a repayment plan?

    Once you all your information gathered and have written (and sent) your hardship letter you are ready for step 2: developing a plan.

    For more information on the information package provided by the Illinois AG check Lisa Madigan’s website.

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