Loan Modification Hardship Letters – Tips For Writing One
If you’re one of the thousands of homeowners affected by our current economy and in need of a modification on your mortgage, you will need to write a letter to your lender asking for modifications due to hardship. If you’ve never had to write a hardship letter, chances are you don’t know what one is or how to write it.
Even when you know that you have to write one, you may not be sure of what information it should include or what documentation to send with it. Many people don’t even realize that they have to write a hardship letter when they apply for a loan modification.
If you don’t take the time and effort required to write a sufficient letter, you will almost surely be denied a home loan modification, even if you meet all the other qualifications. The hardship letter is what notifies your lending institution that you are in need of a loan modification and is an important part of your application for one.
If you don’t write the letter, the mortgage company will figure that you must not need the loan badly enough if you couldn’t take the time to write a letter.
While there aren’t any hard and fast rules or formats for writing a hardship letter, there are some things you can do to make it easier to perform this task.
1. Gather a year’s worth of your financial records before you start your letter. Include in your letter all details about your debt and financial situation in order to support your report for a loan modification.
2. Make your letter clear by listing your financial difficulties chronologically and in detail. The easier it is for your lender to read, the less confusion there will be.
3. Do the math for your lender and let them know what monthly mortgage payment you can afford. While providing an estimate is fine, get as close as you can to an exact figure by calculating your monthly household income and subtracting all monthly household expenses.
Now that you’ve got the basics covered, let’s move on to some tips to consider when writing your hardship letter.
- While you don’t want to write like you’re having a pity party for yourself, you do want to explain to your lender how your financial difficulties have adversely affected you and our family. Find a nice median between writing a letter that is too basic and writing a letter that is too complicated.
- While you don’t want to mention to your mortgage holder that you are considering selling your home, if you are, you do want to let your lender know that you want to work with them over time, even if you don’t see that as a possibility right now.
- Include information that applies to your financial situation without sharing too many personal details. Don’t include language where you blame the economy or your marital status – just stick to the facts.
- Your letter should be polite and written in a friendly tone. After all, you are asking them for their help, so keep your frustration to yourself.
- Include copies of documents such as current bank statements or bills that validate your financial hardship.
Now you have some tools to get you started on writing a loan modification request letter, you just have to sit down and do it.
For detailed facts and essential tips about how you can get approved for a loan modification, visit this simple, easy to understand loan modification guide and resource: http://HomeLoanModifications101.com
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