When you start to find it hard to make your mortgage payments and you cannot get your loan refinanced, it is time to get a loan modification. Your first step is to write a hardship letter explaining your need. The hardship letter explains why you are requesting a modification and why you need it. It is unfortunate that modifications are rejected because the writer has not learned how to write an effective hardship letter that communicates what is needed.
The hardship letter is addressed to your lender, enabling them to understand your financial situation and why you cannot pay your bill. The lender uses this letter and other things to determine if you will get a modification. You must convince your lender that a modification is the only way you will be able to avoid losing your home to a foreclosure. Make sure your lender knows that keeping your home is the most important thing in your life right now and you will do whatever it takes to keep it.
The letter is supposed to provide details of your trouble, but don't go into too much detail. Your lender does not care about every detail of your life and they don't want to read a dramatic novel. While they may feel sympathetic about your circumstances, their sympathy is not what you are looking for. You are trying to get them to grant you a loan modification. Write truthfully and be honest about your troubles and your circumstances, but without a defeatist or whiny attitude. In the end you want your lender to know you have fallen on hard times but are determined to do whatever it takes to keep your house. A loan modification will help everyone since you are 100% committed to paying your reduced mortgage.
In today's economic situation, you can only imagine how many hardship letters homeowners are sending to lenders. If your letter is not correct, it will be passed over. It should not be too long. Don't beg for pity or leniency. Propose a solution to your problem by suggesting that with a modification you could get back on track. Lenders are looking for letters that indicate you have thought about this and will be able to honor your modified loan. Make sure your letter conveys the fact that you are an honest, trustworthy person who has simply fallen on some hard times. With some help from your lender, you will be able to overcome your difficulties and keep your home. This commitment must be your first priority.
It is a good idea to work with a financial advisor to write your hardship letter. You can also search the Internet for templates of hardship letters that will give you ideas and pointers about writing this document.
You will increase your chances of successfully getting a modification if you know what to include in a hardship letter. You can learn what to include and how to write one by reading this
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