| Several Important Tips for Writing a Loan Modification Hardship Letter |
Homeowners who are seeking a modification on their mortgage must write a hardship letter to tell their lending institution about their situation. For some, this is very difficult since they are not sure what a hardship letter is.
Many homeowners don't even know that they have to write a hardship letter when they apply for a loan modification. Those who do know they need to write one are not always sure of how to do it or what should be included in it.
If you are applying for a loan modification, you need to know that the hardship letter is a very important piece to your application. If you don't take the time to write this letter almost always results in a home loan modification denial. You might meet all the other qualifications, but without writing the hardship letter, all your other efforts will go to waste. It is the hardship letter that tells lenders if you really need a modification. Without the letter the lender will assume that you are not really suffering enough of a hardship to be bothered to write a letter.
There is no single formula for writing a hardship letter, but there are some things you can do to prepare yourself for writing one.
1. Before you begin to write, gather all your financial records from the past twelve months. Keep the most important one close by so you can refer to them while you are writing. You letter should include many details and convince your lender that you should not be refused the opportunity to have your mortgage modified.
2. Being a list of all the financial difficulties you have had over the last year. If you thinking listing the dates will help your case, do this as well. You want to be very clear and make your letter easy to understand so your lender will not be confused when they read it.
3. Determine exactly how much money you can afford to pay your monthly mortgage. Take your entire household income and deduct your expenses. Your lenders does not want to enter into needless negotiations so even estimated numbers are better than nothing.
This will give you a basis for the rest of your work. When you are working on your hardship letter, here are some tips to consider.
Don't write too simply but also don't be too technical. Use some emotion to explain how your financial difficulties but don't let your letter become a sob story. Stick to the facts and how your circumstances have affected your life. Lenders hear stories like yours every day and you are no exception.
-Let your lender know that you want to work with them over time, even if you don't feel this way right now. If you are considering selling your home, don't include that detail.
-Don't share too much personal information. Just discuss what applies to your financial situation. Your lender is not interested in how you feel about your divorce or your opinions on the economy, they just need to know the basics of how you ended up in the situation you are in.
- Write a polite letter. You might think this should be well known, but sometimes homeowners write in frustration and their tone is angry. Do not show your anger, you are asking for help and hoping to get it fast.
- Make sure you include current bank statements and any other paperwork that shows your recent financial hardship.
This information should be sufficient enough to get you stated on writing a loan modification agreement. Almost anyone is eligible for loan modification today, the key is knowing how to get it and doing the work.
For essential tips and facts about how to get approved for a Loan Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/
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