Your bank wants to know what has happened in your life to cause the problems.  This is your opportunity to explain to your lender the circumstances that caused the hardship and what steps have been taken to deal with the problem. A compelling Loan Modification Hardship Letter tells the lender whether your family has experienced an “acceptable hardship” and can assure the bank that if given the chance, the home loan payments will be paid on time from now on.

Wondering just what is an acceptable hardship? Here are some of the acceptable hardships:

1. Loss of job or reduction in income 2. Death of the homeowner, spouse or family member 3. Illness of homeowner or family member 4. Divorce or separation 5. Forced job relocation by employer 6. Adjustable rate reset-payment shock 7. increased expenses

But, how do you write a convincing loan modification hardship letter that is concise but also tells the lender everything they should know about your family’s situation? Keep in mind that lenders are inundated with frantic homeowners trying to find an affordable alternative to keep their home. They have heard and seen it all, so here are some tips for a successful Loan Modification Hardship Letter:

• Don’t be too long winded- 1 to 2 pages at the most
• First, describe the hardship and the circumstances that caused it – make sure that you include the approximate time frame that you first began to experience difficulties. This should tie in with any late payments you may have. Establish the connection between the circumstances and any delinquencies
• Explain what steps have been taken to correct the situation
• Provide the lender with your plan to get back on track and stay there
• Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home-provide a few details about your involvement in the community. Briefly tell about your child’s school or sports activities, your church involvement-lenders are concerned about maintaining the integrity of neighborhoods and communities

Millions of homeowners are in the same boat-how you choose to deal with your current situation makes the difference between success and failure. Informed and proactive homeowners can work directly with their lender to successfully lower their rate, modify the term, or reduce principle to arrive at a new lower monthly payment. You don’t need a lot of experience, just some knowledge about the process and how it works-you could save thousands of dollars. Take advantage of a software program designed just for homeowners that does all the calculations for you-avoid costly mistakes.

CAUTION! Writing a convincing hardship letter is just one part of the loan modification application. You will also be asked to show your income documentation and complete a financial statement. Before you contact your lender about a loan modification, get informed and be armed with the insider information and negotiating tips that give you a fighting chance of success. Learn the approval guidelines for the Obama stimulus home saver plan before you complete your application. There is a standard 4 step formula lenders use to determine if you qualify-you can learn and use this very same formula to make sure you fine tune your application and qualify for help.  You can take advantage of the #1 resource for homeowners-the Loan Mod Quick App software actually mimics the federal guidelines for approval.  All you need to do is input your own income and expenses, and all the calculations are done for you automatically.

Don’t feel overwhelmed or confused.  You can 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-end the frustration-Visit myloanmodificationcenter.com and order today.

Your lender wants to help qualified and deserving homeowners-so how do you convince them that you are a good candidate?  Here is one of those important phrases you should include in your hardship letter for a loan modification.  You don’t have to write it this way verbatim, but the general idea is, “I am at imminent risk of default if I do not receive some assistance”.  This tells the bank that foreclosure is knocking on your door and if they don’t provide some kind of relief you may lose your home.  This is very important if you are not yet delinquent, but facing the prospect of a higher mortgage payment due to interest rate reset, or perhaps the loss of income.

One other key element in your hardship letter for loan modification is the reason you can no longer afford your monthly mortgage payment.  These phrases concisely explain that:  “reduction in income”, “loss of employment”, “increased expenses”, and then you can go into some short details about what happened to you.  You don’t want to go on and on-the counselor does not have time and will not read it anyway!  That is why it is important to use these trigger phrases in your letter so that the reader will be able to immediately identify you as a good loan workout candidate.

Running out of funds is another key trigger.  Perhaps you have been “depleting your reserves, savings accounts, borrowing from retirement accounts, to meet your monthly expenses”, that is the sign of a hardship situation.  Also, if you are “using credit cards to pay daily living expenses”-again, more evidence of an acceptable financial hardship situation for your letter.  The main criteria is to present your situation honestly and be able to backup your story.  Not every homeowner can or should get a loan modification.  But if you are in a desperate situation and have no other options, you really need to work hard, learn the process and submit your own application to your lender.  Hundreds of thousands of homeowners have already received a loan modification, you can too.

Learn all of the trigger phrases and get the help you need to apply and qualify for a loan modification by ordering the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read, home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. You also get 30 days of email support to ask questions, a series of insider tips and a monthly newsletter to keep you up to date on program changes.

Home Edition Loan Modification Kit with Customer Assist

Learn how to qualify for the Obama Federal loan modification plan. Need help completing your loan modification forms?  Find out about our Customer Assist program-you work one-on-one with your very own expert to make sure your application is completed correctly. Get started today on the path to secure home ownership, order The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Getting behind on your bills and stressing out about how to get back on track?  A loan workout to lower your mortgage could be the answer.  What does it take to apply and qualify for help from your lender?  The very first criteria for a loan modification is a hardship situation. This usually means that due to circumstances out of your control you have lost income or have increased expenses, perhaps due to medical, divorce, natural disaster, etc. The bank wants to be certain that you are indeed a deserving candidate for a loan workout. Just because your neighbor got a 2.5% loan modification, is not a good enough reason for you to get one!

In addition to the loan modification hardship letter, the feds are so serious about only helping deserving homeowners and weeding out those who want to jump on the modification bandwagon, they actually have you sign an Affidavit. This is a standard form that you complete and sign under penalty of perjury. A section of the affidavit asks you why you are facing a financial hardship-you check off all applicable boxes. Another section has you sign stating that you have not intentionally missed payments in order to qualify for a loan workout.

Your lender wants to know what is happening in your life-don’t be afraid to contact them yourself.  They want to hear from you and you must also write a brief description of your actual situation. This is your chance to tell the bank what has transpired in your life to put you in your current circumstances. You want to write a compelling story-one that is sympathetic and gains your lenders cooperation-but it must also be concise and to the point. No need to write a novel-they won’t read it anyway if it’s too long!

Insider TIP:  A loan modification hardship letter and affidavit is the basis for granting you a loan workout. If you can prove to the bank with some type of documentation-say copies of medical bills or military deployment orders-that you ability to pay the mortgage has been affected, then at least they will be willing to review your application. It’s really the whole picture that your bank wants to see-your current financial circumstances, your ability to pay and maintain the new modified payment, and how your budget fits into the program guidelines.

You can follow step by step directions to write a convincing hardship letter, complete your financial statements and include all the necessary documents by using the #1 homeowner resource guide, The Complete Loan Modification Guide. Now is not the time to take chances.  This is a very serious process, and since your home could be on the line, make sure you do everything you can to be successful.

You can get the help you need to apply and qualify for a loan modification by ordering the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read, home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. You also get 30 days of email support to ask questions, a series of insider tips and a monthly newsletter to keep you up to date on program changes.

Home Edition Loan Modification Kit with Customer Assist

Learn how to qualify for the Obama Federal loan modification plan. Need help completing your loan modification forms?  Find out about our Customer Assist program-you work one-on-one with your very own expert to make sure your application is completed correctly. Get started today on the path to secure home ownership, order The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

]]> http://myloanmodificationcenter.com/blog/loan-modification-hardship-letter-write-one-that-gets-results/feed/ 0 http://myloanmodificationcenter.com/blog/latest-news-and-updates-on-loan-modifications/ http://myloanmodificationcenter.com/blog/latest-news-and-updates-on-loan-modifications/#comments Thu, 02 Oct 2008 19:36:52 +0000 admin http://myloanmodificationcenter.com/blog/?p=70 How does all the turmoil on Wall Street, the recent bank failures and bank take overs affect your chances of getting a loan modification?  Well, all those financial storm clouds may have a silver lining if you are in a bad loan that you can no longer afford.  There is more incentive now to offer troubled homeowners a quick and cost effective solution to avoid foreclosure and clean up the mess these banks have caused.  The government is strongly encouraging lenders to offer loan modifications to their delinquent and troubled borrowers.

This is a window of opportunity you should not miss-if you are facing foreclosure, or in a toxic, unaffordable loan and have not been able to refinance, NOW is the time to contact your lender about applying for a loan modification.  There are billions of dollars of bad mortgage debt that needs to be re-structured and turned into performing assets for these failing banks.  The fastest, easiest and most cost effective way to do that is to give homeowners a fresh start with their existing home loan.  Your lender may be willing to offer you a lower interest rate, a longer loan term and even forgive some principle balance to arrive at a new, lower payment that will keep you and your family in your home and stop foreclosure.

You should get started immediately by learning all you can about the loan modification process-what it is and how it works.  There is a lot of information available on the internet about loan modifications that you can refer to.  In fact, there is so much information online, especially with many new companies popping up and offering to help you for a fee, it may be hard for you to get the most accurate, up to date and unbiased information.  It is imperative to do your research and be prepared before you call your lender.

One very good source of accurate information contained in one easy to read source is The Complete Loan Modification Guide handbook.  This is a low cost book that you can download right online that

Home Edition Loan Modification Kit with Customer Assist

will provide you with step by step instructions on how to prepare a successful loan modification application.  You will be provided with the necessary loan modification forms, as well as given detailed instructions on how to complete the forms properly.  There is hardship letter advice, as well as invaluable negotiating tips to use with your lender to make sure you get the very best loan modification you can.  Utilize the 7 Steps to a Successful Loan Modification so you have a fighting chance with your bank.  Take the time to research, learn and prepare-saving your home is worth your time and effort.  So get informed and get going!

If you would like more information about loan modifications, please visit us at:

http://www.myloanmodificationcenter.com

A Loan Modification Company will agree to contact your lender on your behalf and handle the paperwork processing, submission and negotiating aspect of the process.  They should do all the calling, follow up and play hardball with your lender if necessary to get you the best loan modification.  The Loan Modification Company should be experienced in dealing with various lender’s loss mitigation departments and know how to get thru to the right person immediately.  Sounds great, sign me up-BUT-the Loan Modification Company also requires a large upfront fee from the homeowner to start the loan modification process.  That can be tough for an already financial strapped homeowner.  After you pay typically anywhere from $1000 to $5000, you will receive NO guarantee of a successful outcome.  They can’t give you a guarantee as it is your lender who decides to approve or deny your loan modification application.

What do you get for all that money?  Ideally you get a professional, experienced representative who knows what the lender needs to see from a borrower in order to approve the loan modification application.  This means that your income and asset documentation has been reviewed and itemized properly on the correct forms prior to submitting it to your lender.  They should also have performed a Comprehensive Market Analysis to determine the current, accurate market value of your home.  Your Loan Modification Hardship Letter has been critqued to assure that your circumstances are presented in a compelling and concise manner so your lender has a clear picture of why they should grant the loan modification.  The Loan Modification Company should have computed and presented a modification plan including interest rate reduction, term modification and principle reduction to present to the lender so your target payment can be reached.

Some Loan Modification Company’s work with an Attorney, more do not.  What is the benefit of having an Attorney involved?  Well, an Attorney can use some legal tactics to bring pressure to bear on reluctant lenders.  The threat of pursuing lending violations such as RESPA and TILA make a lender sit up and take notice.  Experienced Attorneys know the power of these laws and can use them to convince a lender to accept a loan modification on behalf of the homeowner.

Now, what about becoming your own Loan Modification expert?  It may sound daunting, but the truth is that with some basic knowledge and preparation, you can put together a succesful do it yourself loan modification package and work directly with your lender to modify your loan.  After all, no else is going to work as hard as you will to save your home.  Here are some of the basic steps. There are certain calculations that lenders use to determine if you qualify for a loan modification.  The most important is called debt ratio.  This is a simple calculation using your income divided by your monthly outgoing payments.  The tricky part is showing the lender that while you cannot afford the current payment, you can afford the new, lower, modified payment.  This is can easily be done by completing two financial statements-one with the current payment and one with the new proposed, lower payment.

You can find out the current value of your home using several easy and free methods.  You can use internet sites like Zillow, or you can contact a local realtor and ask them to run a Comprehensive Market Analysis for you.  Most realtors will happily help you as you could be a future client.  Once you know the current value of your home, you can use this as ammunition with your lender.  If the loan balance is higher than the current value, your lender will much prefer to modify your loan to keep you in the home rather than lose more money by taking the home back in foreclosure.  This strategy can even be used to negotiate to lower the principle balance on your home loan to closer reflect it’s current value.

Whether you decide to retain a Loan Modification Company or do your own loan modification, it is imperative to have a very clear understanding of how the process works, what your lender is looking for to approve your loan modification application and making sure your best interests are served by a Loan Modification Company and your lender.

The Complete Loan Modification Guide will give you the information you need to learn the 7 Steps to a Successful Loan Modification, as well as give you insider tips for negotiating with your lender like a professional.  The Complete Loan Modification Guide also provides all the necessary loan modificaton forms, along with detailed instructions on how to complete them properly.  This easy to read and easy to follow Guide will give you the fighting chance you need to fix your loan and save your home.  Do not contact your lender until you are fully informed and educated about your options.

If you would like more information about loan modifications, please visit us at:

http://www.myloanmodificationcenter.com