Loan Modification Hardship Letter

by admin on February 19, 2009

If you are considering asking your lender for a mortgage modification, make sure to come to the meeting armed with documentation. One of the most important things you can show your lender is something called a hardship letter. A hardship letter outlines the specific circumstances that are causing you to fall behind on your mortgage or will point out that you are on a path where you might begin to fall behind on your payments.

The purpose of this letter is talk about your personal situation in about 1 to 3 pages, there is no need to write a book as your lender will quickly get overwhelmed and stop reading. For example, if you recently lost your job and your wife had an unexpected illness that caused her to stay in the hospital longer than expected, you should focus your letter around those very important topics. Be honest about your situation, but also try to be upbeat toward the end of the letter, so you can show that you are turning the corner and will eventually be able to make the mortgage payments if only you get some help from your lender.

Write your letter in Micsrosoft Word or a similar word processing program so you can go back and edit. You will want to write a first draft and then give it to a close friend or relative to read over and give you honest feedback. Try not to be overly sensitive with any critical feedback, it’s important you get this letter right as it will probably be the first time your mortgage lender comes into contact with your specific case. You may be required to send this letter in first and then you will get the opportunity to meet face to face with a reprentative from the lender.

If you are satisfied with your letter, you will now want to call your lender and find out where you are going to send this. After you send it off, give the company 7-10 days and then call to make sure they’ve recieved it and are reviewing it. Try to get a name or representative from the company that you can call back with any questions. Any time you can become more than a number, it will be a huge benefit to your situation. Before you hang up the phone, find out when you expect to hear back from them regarding your loan modification and what the next steps are. That way you have established the next touch point and you will have a reason to call them if they go past the deadline and don’t call you in time.

A hardship letter may be difficult and painful to write, but it’s important. Anything you can do to explain your problems will only humanzie the situation and make things better for you in the long run.

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