A well thought out and well written Loan Modification Hardship Letter can be the difference between success and failure when making a loan modification application. You must remember ever since the Obama Administration announced the new Loan Modification Plans And Programs back in March 2009, the majority of lenders have been inundated with applications.
So your letter needs to be clear, concise and if at all possible as unique as you can:-
1) Don't make excuses. Just describe in detail what the hardship is and why you are in this situation.
2) State what you have tried to do to overcome your current financial hardship.
3) You need to fully emphasize to your lender how important it is to you that you and your lender work together to resolve any problems.
4) Explain what your plans are to get yourself back on track with your mortgage repayments.
5) Don't beat around the bush. Be very clear and get to the point.
The Hardships that lenders will accept:-
- Death of a family member or the person who pays the mortgage
- Loss of your Job or Relocation
- Due to a reset variable rate your monthly mortgage repayments have increased