Writing a Successful Loan Modification Hardship Letter
The bank is looking for three main things in your hardship letter and the better prepared you are to address them, the more likely chance you will have of being approved for loan modification.
An outline is a good place to start before composing the letter so that you can map out all the areas that you want to cover and not leave anything out.
First, tell that what happened to put you in this financial hardship. Did you lose your job? Was there a medical emergency or increased medical bills? Did you go through a divorce? Explain to your bank, being completely honest about it, how you got into the situation that you currently face in terms of struggling with or being about to struggle with making your monthly mortgage payments.
Second, explain to your bank about the timing surrounding these hardships. It will be in your favor if you can demonstrate that you’ve never missed a payment and never made a late payment until you met with adverse circumstances.
Third, create a plan that shows the bank what you’re going to do to ensure that after loan modification you won’t once again struggle financially. Create a budget and share this with your lender to demonstrate that you are taking your situation seriously and going to work on it proactively. If your family is going to make sacrifices in order to pull out of debt, such as giving up club memberships or foregoing a family vacation, tell the bank that as well. What you’re trying to do is show the mortgage lender that you are committed to homeownership and will do whatever it takes to rise above your financial hardship.
The loan modification hardship letter is really the only opportunity you get to tell your side of the story and humanize it so that you’re not just looked at as an account number or a credit history. Be compelling in your letter, but don’t whine, complain, or start to place blame. Outlining your hardship story, the timing of events, your good faith efforts, and your recovery plan, in concise, believable, and sympathetic language will help you write a compelling letter.
For detailed facts and essential tips about writing a successful loan modification hardship letter, visit this simple, easy to understand loan modification guide and resource:http://HomeLoanModifications101.com
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