subject: Three Important Points You Should Include In Your Loan Modification Hardship Letter.... [print this page] Homeowners facing unaffordable mortgage payments can get help from their lenders by writing an effective loan modification hardship letter. It is important to tell your lender about your current financial situation and the reasons you are seeking loan modification. A good loan modification letter should be brief, but make sure to address the 3 important questions your lender wants answered.
It is a good idea to follow an outline while you are writing your hardship letter. This will help you organize what you need to say and make sure you don't leave out something your lender will ask about. If you address the following 3 areas, your lender will be more likely to work with you to modify your loan.
1. Briefly describe your current financial situation. Has someone lost a job or had their hours reduced? Is your family facing high medical bills? What other financial hardships are you facing? Do your best to explain to the bank why you are seeking loan modification.
2. How long have you been facing financial difficulties? Be sure to make the link between your financial situation and any missed or late payments. If you do not yet have late payments, or will soon be in default, let your bank know when you think that will happen. Your lender needs to understand that your late payments are due to your financial situation and that you are actively trying to work with them to make payments as you are able.
3. Explain what plans you have made to meet your new modified payments and stress that you are still committed to owning your home. Tell your bank if you have modified your family budget such as cutting out restaurant dinners, high car payments, or other items.
Your loan modification letter is your best chance to make your bank understand why you are facing financial hardship explain your situation so the bank with empathize with you. Key details about why you are committed to home ownership and staying in your community can help the lender understand your situation better. Your family deserves to stay in their home, and you deserve affordable payments. Be sure to take the time to write a good loan modification letter so that you can qualify for this benefit
by: joanna
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