How To Write A Hardship Letter For Loan Modification – Ignore These Tips At Your Peril
If you’re behind on the mortgage, writing a hardship letter to prevent foreclosure may be the key to securing your financial future. Obama’s federal stimulus plan includes provision for homeowners to get loan modification when experiencing financial hardship. Loan modification – ie modifying the main terms of your mortgage- has developed into a popular topic of conversation in recent times as a lot of households over the US, from rich to poor, experienced tough financial times ever since the start of the market meltdown.
The Devil Is In The Detail
If you’re genuinely struggling to produce your repayments, you could think it’s an easy task to post a mortgage loan modification hardship letter. However, be warned that a bank or lender features a very specific means of dealing with mortgage modification. If you get one detail wrong inside your hardship letter, you risk having your loan mod request denial.
So How Do I Write A Loan Modification Hardship Letter?
A hardship letter is simply one part of the process. You’ll also must provide extensive financial documentation to be able to have any possibility of being approved. The lenders are inundated with applications so they’ll quickly deny anyone who’s not done their homework. Luckily you may speak to specialist home loan modification advisors who’ll supply you with an exact listing of the paperwork you will want.
Your letter ought to be a concise description of your very own experience of hardship. Two pages might be more than enough. There are several what exactly you need to state. A sample letter would cover:
The reason behind the hardship from the start. Did you lose your livelihood? Has your earnings dropped on account of illness, death or divorce?
Specific times and dates of any events that resulted in hardship. You should also explain the reasons why for any late or missing repayments.
Your financial plan for getting back on track when you get approved.
Make it personal.
Mention that you have already made significant cutbacks with your monthly expenses. You’ve cancelled your gym, cable and magazine subscriptions to ensure it is possible to make your home loan repayments. All these examples will deliver your lender a greater insight and boost your chances of success.
Once you might have your facts and figures available, you’ll want to consider the “way” you present yourself as part of your hardship letter. Mention the way you contribute to your neighborhood community. Are you included in any local church or sports group? Tell your story so that your particular lender will likely be compelled to approve your mortgage mortgage loan modification agreement.
