[Prepare on mortgagee’s letterhead and provide to borrower(s). Also provide cover letter explaining that they may wish to send the letter below to credit reporting agencies or other parties that will be considering extending credit to the borrower(s).]
To Whom It May Concern:
Our records indicate that _________________ was the mortgagor of record
of an FHA-insured mortgage held by ____________________ on the property
located at ______________________________. The FHA Case Number was
XXX-XXXXXX-XXX. The original principal balance on this mortgage was
$________, with an interest rate of XX%. The date of the first payment due on
the mortgage was ________, with a term of ______ months.
As a result of __(insert name of declared disaster), the property
securing this loan was seriously damaged or destroyed. The damage made
the home uninhabitable and it was not financially feasible to repair or rebuild
the dwelling. The borrower worked with the mortgage holder to obtain all
available hazard and flood insurance recoveries for application to the
mortgage debt, voluntarily conveyed title to the property to
________________________ on _________ and was granted a release from all
remaining financial obligations under the mortgage.
Due to the extreme circumstances resulting from (insert name of
declared disaster), both (insert name of mortgagee) and the Department of
Housing and Urban Development jointly request that any potential creditors
take notice of these circumstances when deciding whether to grant credit to
Thank you for your attention to this matter.