Loan Modification Hardship Letter - Speak Your Case to the Lender
A loan modification hardship letter is an integral part of loan modification application to the lender.
Most borrowers do it as a mere formality, but the truth is that a loan modification hardship letter speaks for your case to the lender in your absence and is your only chance to explain your situation to the lender.
In this time of economic crisis, when the numbers of home loan modification applications are increasing, a well drafted loan modification hardship letter can distinguish you from the rest.
More comprehensive and compelling a hardship letter is, brighter are your chances of getting a loan modification approval.
oIn your loan modification hardship letter talk about the things that a lender would want to know such as how do you plan to pay off the loan in full? Include every detail that can get you ahead in the row.
At the same time try to keep the letter succinct, do not make the letter a 10 page document which nobody would want to go through.
oTalk in the letter about the financial hardship that you are facing.
Job loss, reduced working hours, divorce, medical reasons are some acceptable causes of financial hardship.
oTalk about the nature of the financial hardship; whether it is temporary or permanent.
Be very specific with the date the financial hardship started and how long it is expected to last.
oTalk about how the financial hardship is preventing you from paying the mortgages and how if the mortgage is modified you will be able to pay up the loan oIf the hardship is temporary what have you done to resolve the hardship and if it is permanent how you do propose to pay back the loan.
oMaintain a very positive attitude.
Show all your honest intentions of paying back the loan in full on the modified terms and that paying up the mortgage is your top priority over other financial commitments.
Illustrating the above mentioned points; in a loan modification hardship letter, start with your loan details and talk about your regularity in payment in past.
Then transcend over to the financial turmoil you are facing.
If the reason of your financial hardship is a job loss then explain how this has affected your ability to pay.
Mention the specific date you lost your job and how do you propose to be able to pay the mortgages on the modified terms.
For example you have taken up another job which pays you lesser than the previous but you will be able to take care of your expenses in this salary and then spare an amount for mortgage payments as well.
If possible give your monthly budget outline.
In the end you can express your intention of paying back the loan in full by focusing the attention on previous loan records or credit history.
This part of the hardship letter is very vital to convince the bank that they are not wasting time and money over a worthless case that will again revert back to delinquency.
Most borrowers do it as a mere formality, but the truth is that a loan modification hardship letter speaks for your case to the lender in your absence and is your only chance to explain your situation to the lender.
In this time of economic crisis, when the numbers of home loan modification applications are increasing, a well drafted loan modification hardship letter can distinguish you from the rest.
More comprehensive and compelling a hardship letter is, brighter are your chances of getting a loan modification approval.
oIn your loan modification hardship letter talk about the things that a lender would want to know such as how do you plan to pay off the loan in full? Include every detail that can get you ahead in the row.
At the same time try to keep the letter succinct, do not make the letter a 10 page document which nobody would want to go through.
oTalk in the letter about the financial hardship that you are facing.
Job loss, reduced working hours, divorce, medical reasons are some acceptable causes of financial hardship.
oTalk about the nature of the financial hardship; whether it is temporary or permanent.
Be very specific with the date the financial hardship started and how long it is expected to last.
oTalk about how the financial hardship is preventing you from paying the mortgages and how if the mortgage is modified you will be able to pay up the loan oIf the hardship is temporary what have you done to resolve the hardship and if it is permanent how you do propose to pay back the loan.
oMaintain a very positive attitude.
Show all your honest intentions of paying back the loan in full on the modified terms and that paying up the mortgage is your top priority over other financial commitments.
Illustrating the above mentioned points; in a loan modification hardship letter, start with your loan details and talk about your regularity in payment in past.
Then transcend over to the financial turmoil you are facing.
If the reason of your financial hardship is a job loss then explain how this has affected your ability to pay.
Mention the specific date you lost your job and how do you propose to be able to pay the mortgages on the modified terms.
For example you have taken up another job which pays you lesser than the previous but you will be able to take care of your expenses in this salary and then spare an amount for mortgage payments as well.
If possible give your monthly budget outline.
In the end you can express your intention of paying back the loan in full by focusing the attention on previous loan records or credit history.
This part of the hardship letter is very vital to convince the bank that they are not wasting time and money over a worthless case that will again revert back to delinquency.
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