Federal Plan

he federal loan modification plan, called HAMP, requires that you provide a hardship letter detailing why you can no longer afford your current mortgage payment.  This letter must include certain information in order to meet the approval guidelines.  When you sit down to write your own letter of explanation, be sure that you include everything your lender will need to see.  It is critical to explain what has happened to your finances so that you will be viewed as a good candidate for a loan modification.

Here is an easy to use outline that will help you to put your thoughts in order and then write an effective explanation of what your current financial situation is and why you need a loan workout.

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Use this outline to help you create your Hardship Letter.

Identify the cause of current payment hardship- check all that apply:

Unemployment Military Service

Separation Payment increase-Rate reset

Divorce Illness

Death of Spouse Incarceration

Death of a family member Damage to property

Too much debt Loss of income/overtime/etc

Medical Bills Other- specify

Job Relocation

Business Failure

We believe that our situation is Temporary Permanent

Use this area to provide answers to the following questions regarding your situation. This will help you to remember details when you write your letter

When did this difficulty first begin?

What caused this difficulty and what have you done to try to remedy it?

Why do you feel your situation has improved, and that you will be able to afford and stay current with your new mortgage payment?

A couple of more tips are to keep it short-don’t go on and on.  The bank reads thousands of letters a day.  They don’t have time to read a novel-one page long is plenty.  Use key phrases in your letter:

Using the phrase, “Imminent risk of default if we are not given help” and increased expenses, lower income and using up our savings to live are all important terminology which can help your case with your lender.  Your goal is to paint a picture for your bank that through no fault of yours it is no longer possible to afford your current mortgage payment.

The loan modification hardship letter is just one of forms required, in order to have the best chance of getting approved you need to prepare a financial statement that meets the federal guidelines.  You can get help to do this easily and correctly with the #1 resource for homeowners, The Complete Loan Modification Guide kit.  Don’t allow frustration and confusion to get in the way of saving your families home.

Get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn’t be easier! Visit myloanmodificationcenter.com and order today.

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