How to Write a Hardship Letter for Loan Modification

Posted by admin On April - 7 - 2009

A convincing hardship letter will play a big factor in whether you qualify for a loan modification.  Finding yourself in a financial hardship situation that results in the inability to pay your mortgage loan is the main criteria for a loan workout.  Your lender needs to be told what has transpired in your life to cause your late payments or inability to continue making payments.  Your job is to gain their understanding and cooperation with a well thought out hardship letter that covers 4 critical areas.  Here are 3 of those elements to help get you started.

If you don’t know how to write a hardship letter for loan modification, don’t worry because we are going to give you some important tips.  Remember this is your chance to explain to your bank why you deserve a second chance.  You must be able to convince your lender that you are deserving in just a few paragraphs.

The first critical element of an effective hardship letter is establishing the timeline of your hardship situation.  This means that you are able to prove that the circumstances you are going through are to blame for the late mortgage because they happened at or about the same space of time.  For instance, if you were laid off in May, and your June payment was late, this makes sense to the lender.  Or, if your were ill for a few months and then had large medical bills, the timeline should match up with the months the payments were late.  For example, you can describe how you struggled to make the payment the first couple of months, but then fell behind.

Another critical part of a convincing hardship letter for loan modification is to provide some details that make your story personal, but remember to keep it short.  The lenders don’t have time to read a novel, so 1 to 2 pages is maximum for the best results.  When you give a few details about your family’s situation, you are gaining the empathy of the person reading your letter.  For example, you can mention your childs offer to give up their piano lessons to help the family, or your wifes using coupons to shop. 

An effective method of gaining your banks cooperation is to backup your story with documentation.  Provide copies of medical bills or a letter from you boss stating your hours have been cut.  Whatever you have that will prove the circumstances were out of your control.

These are just 3 of the helpful tips you learn about in best selling handbook, The Complete Loan Modification Guide.  You will be able to follow the easy, helpful instructions provided so that you can write your own compelling hardship letter.  Remember, this is your chance to convince your lender to help you, make sure you do it right for the best results.

You can get the help you need to apply for a loan modification by ordering and downloading 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. 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.

Home Edition Loan Modification Kit with Customer Assist

Home Edition Loan Modification Kit with Customer Assist

Get started today on the

path to secure home ownership, order and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

 

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