What Is a Hardship Affidavit?

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According to the Mortgage Relief Project, a hardship affidavit is a letter written to a lender that describes a person's financial distress and his ability to resolve it. There are several reasons to write a hardship affidavit, but the most common purposes are to request a loan modification or short sale to avoid foreclosure.

As stated by the Mortgage Relief Project, a hardship affidavit, or hardship letter, that is written by the homeowner is a required step in the loan modification process even if the homeowner has attorney representation. In the event that the homeowner retains an attorney, the attorney can assist in the writing process and include the letter with other financial information. When writing hardship affidavits, there are two essential pieces of information to include: why the homeowner has fallen behind on payments and how he will sustain his payments moving forward.

To write a successful hardship affidavit, there are a few simple steps to follow as included on the Mortgage Relief Project website. Limit the letter to one page and only include pertinent information relating to the case. Be specific with the request. Finally, validate through the lender that the need for hardship assistance qualifies as a financial hardship. Typical examples of valid hardships include loss of income, divorce or separation, military service and medical expenses or illnesses.