If you have contacted your mortgage lender about applying for a loan modification, you've likely been told that you are required to prepare a letter explaining your financial situation. Mortgage lenders refer to this document as hardship letters. The letters main purpose is to summarize for the bank or lender the financial conditions that are causing you to apply for a mortgage modification. It is extremely important that these letters are properly written. Think of it as making a good first impression on paper.
Clarity and accuracy are essential when writing a hardship letter because if you don't clearly state your financial situation, you run the risk of being rejected fora loan modification or a forbearance period. An incomplete listing of expenses and debt will not give the lender an accurate assessment of your situation. An inadequate explanation of what you have done to increase your income could cause the lender to think that you could do more to fix your finances on your own.
Providing a plan to resolve your debt is equally as essential to writing a properly written hardship letter as clarity and accuracy are to the letter. Your lending institution wants to know that you have a feasible plan in place to reduce your mortgage debt. Lenders are more likely to help find the financial assistance you need if you have clear-cut goals to reduce your debt. A concisely written plan shows that you simply need some help with a mortgage modification, as opposed to needing the bank to pay off your mortgage completely.
The attitude with which you write your hardship letter will make a significant difference in how it is received by your lending institution. You want to avoid placing blame on others and seeking sympathy for yourself. A simple, honest straightforward document gives the proper tone needed for a hardship letter.
Just as making first impressions are important; this early step of writing a proper hardship letter needs to make a good impression on yourmortgage lender. A properly written hardship letter will help your chances greatly of obtaining that mortgage modification that you need.
Although a proper hardship letter is a good step toward achieving your home loan being modified, there are more steps and pitfalls that you can fall in to. You will need to learn the subject in and out, learn the vocabulary that shows you know what you are talking about so that you show you mean business.
The best solution is getting a do it yourself loan modification kit. One such kit is 60 Minute Loan Modification. It include a professional hardship letter outline that will catch your lenders attention, it also includes conversation between homeowners and representatives, so that you can hear what to say and more importantly what not to say. The kit will teach you all the needed vocabulary, and most importantly the kit was created by a person who modified five of his home loans, and numerous loans of his clients. Many people used this kit with success, and overall it's a great product.
