Loan Modification
Hardship Letter Process
What is the process for writing the best loan
modification letter. First what is a hardship. A financial hardship is the home
owners explanation of a financial
difficulty which has resulted in their not
being able to pay their monthly mortgage.
In order to start the loan modification process your hardship letter must be
able to show that you really want to keep your home. It must explain exactly
what happened and when so as to cause you financial trouble.
Your hardship letter must also include whether your hardship
is temporary or long-term. You need to explain what you plan to do to fix the
problem, as well as what you have done and are doing.
Before you begin the writing process you need to ask yourself some important
questions. We are going to persuade and convince our reader that we deserve a
loan modification.
Your loan modification hardship letter must explain this information:
What situation happened or multiple circumstances occurred that has caused you
to not to be able to pay your monthly mortgage payments.
What was the exact date or range of dates that the financial hardship happened.
Is the hardship going to be temporary or is it permanent.
Do you really want to keep your house. If you don't show a real desire to keep
your home the lender may not negotiate a loan modification.
How many months are you behind on your house payments, if any. How much money do
you owe up to this point in time.
How much are you able to pay at this time.
What are you doing to overcome the financial hardship. This could be getting a
second job, cutting back on expenses, having a yard sale, selling stock and
assets.
Your loan modification hardship letter should verify and convince your lender
that you deserve a loan modification.
Reviewing an example hardship letter is a great way to get started. Once you
have a good idea of how to write one by reading an example letter a few times,
then you can write it in your own personal style.
Dear name of lender,
We are writing this letter to let you know that we have experienced some
financial hardships which have made our monthly mortgage payments unaffordable.
One May 20, 2007 Susan was laid off from her teaching job in which she was
earning $70,000 a year. Now she is earning on $20,000 a year as a substitute
teacher.
William is an architect who was earning $90,000 a year. In March of 2008 he
developed an illness in which he can now only work a third of the the time he
used to resulting in a 70% pay reduction to $30,000 a year. He is going through
rehabilitation in order to return to 100% health.
Both of these setbacks should be temporary but we don't know how long they will
last. Since this hardship we tried to cut back on expenses and have sold some
stocks. Overall we are living on a tight budget.
Even with our cutbacks we have fallen behind a few months on our mortgage
payments. Currently we owe $4,500 for the past 3 months. We love our home and
are willing to do whatever it takes to keep living in it. We want to request a
loan modification in order to give us some relief and so we can continue to make
our monthly mortgage payments.
thank you for your consideration,
sincerely,
William and Susan Cooper
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