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
- Divorce
- Loss of your Job or Relocation
- Due to a reset variable rate your monthly mortgage repayments have increased
Showing posts with label Mortgage Loan Modification Plan. Show all posts
Showing posts with label Mortgage Loan Modification Plan. Show all posts
Thursday
What's All This About Mortgage Loan Modification Plans?
The Government has now come up with two plans to help people who have missed payments on their mortgage and are struggling. In this article i wish to introduce you to the one that is called a Loan Modification plan. To qualify, you need to meet the following criteria:-
- Your original mortgage loan cannot be greater than $729,000
- Your mortgage must have completed prior to January 1st 2009
- You will be required to provide proof of your income and expenditure, through payslips, tax returns and bank statements
- If your total debts are in excess of 55% of your income, you have to agree to visit credit counselling
- Finally, you must be living in the mortgaged property and will be required to write a letter in your own handwriting stating that you are in financial hardship
So what can your lender do for you in this situation?
- They can lower your monthly repayments to approximately a third of your monthly income.
- Interest has been known to be dropped to as low as 2%.
- You don't need to pay any fees for the modification as these are covered by the government
- The government are able to reduce your balance by up to $5000 over 5 years as long as you make your payments on time
- Your rate is reduced for the period of 5 years, so you may have to pay more after this period
- You are only ever allowed one modification
Loan Modification Companies have been reported to charge anywhere from $1500 - $5000 to help you with this process. If you don't have that kind of "spare" cash lying around, you will need to complete a "Do-It-Yourself" Loan Modification.
- Your original mortgage loan cannot be greater than $729,000
- Your mortgage must have completed prior to January 1st 2009
- You will be required to provide proof of your income and expenditure, through payslips, tax returns and bank statements
- If your total debts are in excess of 55% of your income, you have to agree to visit credit counselling
- Finally, you must be living in the mortgaged property and will be required to write a letter in your own handwriting stating that you are in financial hardship
So what can your lender do for you in this situation?
- They can lower your monthly repayments to approximately a third of your monthly income.
- Interest has been known to be dropped to as low as 2%.
- You don't need to pay any fees for the modification as these are covered by the government
- The government are able to reduce your balance by up to $5000 over 5 years as long as you make your payments on time
- Your rate is reduced for the period of 5 years, so you may have to pay more after this period
- You are only ever allowed one modification
Loan Modification Companies have been reported to charge anywhere from $1500 - $5000 to help you with this process. If you don't have that kind of "spare" cash lying around, you will need to complete a "Do-It-Yourself" Loan Modification.
Click Here for More Info On The Do-It-Yourself Loan Modification Kit
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