How to Write a Hardship Letter: What to Put in It When You Apply for Mortgage Modification Help

When you apply for a mortgage loan modification, one of the most important pieces of this package is your hardship letter. Here's what to include in it to increase your chance of getting the home loan help you need to stop foreclosure.
By: Yuwanda Black for ForeclosureBusinessNews.com
 
March 9, 2011 - PRLog -- When you apply for a mortgage loan modification, one of the most important pieces of this package is your hardship letter (also known as a mortgage hardship letter and a modification hardship letter, among a few other names).

Before we get to exactly what to put in this letter, let's first explain what it is.

Mortgage Hardship Letter: What Is It?

This correspondence simply explains to your lender why you have fallen behind on your house payments. It can also include details about when you expect to catch up (eg, I was laid off but expect to be recalled in three months).

In short, it puts a "human face" behind the tragedy that is impending foreclosure. And, although it's not legally binding in any way, remember this: the people making decisions about your loan are just human beings. What you say in this letter can literally tip the scales in your favor. So, take the time to write one, explaining exactly what has brought you to this point financially.

Now that you know what it is, let's look at some specifics that should be in your hardship letter.

Mortgage Modification Hardship Letter: What to Include

Events that Caused You to Fall Behind on Your Home Loan Payments: Were you laid off? Were you taking care of a sick child, spouse, or other relative? Were you injured on the job and had to go on disability (which means a pay cut)? Was your job phased out and you have to be retrained in a different field? Did your spouse lose his/her job cutting your household income in half? Have you found it difficult to find other employment and have exhausted all of your savings?

Whatever it is, let your lender know. You're not the only one going through this (trust me, they probably receive hundreds - if not a few thousand - of these types of letters a day) so don't feel ashamed. Tell the truth about what has brought you to this point.

And, don't worry about making it "professional." In fact, the less formal this correspondence is, the better. Speak from the heart when explaining your situation. It will make your situation seem more "real" and may tip the mortgage modification scales in your favor.

Payments You Know You Can Afford to Make: State what payment you know you can afford given your current financial situation. It doesn't mean your lender will give it to you, but at least it lets them know you've been thorough in assessing your personal finances.

Conclusion: Financial Hardship Letter for Home Loan Modification Help

There are no hard-and-fast rules about what to include in a hardship letter for a loan modification. But, the more detailed and specific you are, the better chance you have of your mortgage holder understanding - and ruling in your favor.

Your Contact Information: Be sure to include all the ways that you can be reached, and the best times to contact you.

Your Loan Number: This should be included on every page of every document you send in.

Home Loan Application for Mortgage Modification: Getting Your Package Together to be Sent Off

After you've gotten your entire package together (including your mortgage hardship letter), be sure to sign and date everything. Then, make multiple copies. Why? Because one of the main problems many homeowners loan modifications seem to have is that lenders lose their paperwork and they have to submit it over and over and over again.

So, just to be on the safe side, make several copies of everything. If you fax materials, one copy may be sufficient. But having multiple copies is still recommended, just in case you want to send hard copies at another point in time.

Good look getting the home loan modification help you require to prevent foreclosure.

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About http://ForeclosureBusinessNews.com: Site features "Foreclosure News the Average Joe Can Use" eg, foreclosure cleaning business opportunities, home loan modification sources, advice on how to stop foreclosure, home loan qualification guidelines, etc.

Learn more about documents needed to successfully apply for a mortgage modification at http://www.foreclosurebusinessnews.com/home-loan-help-doc... (the 3/3/2011 post on ForeclosureBusinessNews.com).
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Source:Yuwanda Black for ForeclosureBusinessNews.com
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Tags:Hardship Letters For Loan Modifications, Hardship Letter, Hardship Letter To Mortgage Company, Loan Modification Hardship
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