I am writing this letter to explain why I am currently facing foreclosure on my mortgage to you. Gas prices have become extremely high, if I do not travel to do presentations and meet with clients I cannot assure growth.
Lenders do look for what is known as a hardship letter when a borrower applies for a loan modification. Your hardship letter need to be in your own words explaining your unique situation.
If you are experiencing financial troubles, you want to explore all of the options that are available to you to resolve them. The Hardship Letter Mistakes. After all, if the bank agrees to work with you to find a more affordable way for you to get back on track financially, then they're not making moves to take your home.
Your letter should address the money you make now and the payment modification necessary to never go into default again. Banks really don't want to take your house, but they do want to know that you're going to pay back the money you borrowed from them eventually.
The unfortunate part about this requirement is that the majority of people who attempt to write their own hardship letter get the basics wrong. Just 3 Easy Steps: This letter acts much like an outline or biography of your current issues that are affecting your ability to meet your financial obligations, and by this we mean not being able to afford your mortgage.
Explain your hardship s: I am very distressed that this has ever happened to me, but I was [laid off], [seriously injured], [going through a death in family]. A financial hardship letter should explain to your lender why you are in financial distress and your capacity to resolve it. What is the loan modification applicant doing to rectify the cause of the financial hardship.
Under either option, banks require a hardship letter as part of the process. This sample letter provides a modification request based on income loss resulting from unemployment.
Sure you will get sympathy…maybe…but no loan modification will follow. Both of these explanations are crucial to convincing a lender why it is in their best interest to modify your loan instead of moving forward with foreclosure.
Thinking like a banker is not hard…talking like one is a little more difficult. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Other Possible Reasons for Hardship Requests There are many reasons other than unemployment, divorce and serious illness that may lead to a homeowner needing to request a loan modification.
When a bank considers modifying the original conditions of the mortgage loanthey can also create a way to stop your home from going into foreclosure. When the housing bubble burst, home values dropped, and millions of homeowners who did the right and responsible thing—shopped for a home, secured a mortgage, and made their payments on time each month—were left with houses worth less than they paid for them and mortgages worth more than their homes.
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. You can still use one of the sample letters provided in this article as a guide for writing a letter to your lender.
I hope it goes without saying you should have already eliminated most consumer expenses by canceling cable, magazine subscriptions and eating out…if you have not…you are not serious about saving your home. Because of the down turn in the economy, my employer has cut down my hours, laid me off, my business has slowed down.
Most people believe that telling the bank all about how difficult their situation is and how hard it is to find a job in this economic climate will help the bank feel more sympathy for their situation.
Connect with free counseling resources or locate homeowner events in your community.
The hardship letter allows mortgage lenders to evaluate to some extent the cause of mortgage delinquency for a homeowner. Tally up the figure at the bottom and make a note of how little you have left over each month to pay for living expenses and other necessities.
I want you to get the loan mod, so eliminate trying to gain their sympathy, and just explain how they can help you stay out of default. The following three tips could make your hardship letter stand out and lead to a favorable response from your lender. Get the Inside Scoop on Mortgages!. How Not to Write a Loan Modification Hardship Letter clientesporclics.com Ina homeowner named Dan Bailey got a lot of publicity for writing a hardship letter to Countrywide's chairman, Angelo Mozilo, trying to induce the lender to approve a loan modification.
Oct 03, · Example Hardship Letter One of the items your lender or servicer will ask for during the loan workout or loan modification process is a hardship letter.
A hardship letter is a written explanation as to what has caused you to fall behind on your mortgage and. In the letter, the borrower may request a loan modification, payment abatement period or another type of relief.
Related Articles Sample Hardship Letter for a Loan Modification. Loan Modification Application. Most banks and lenders require that you submit your application for a loan modification in writing.
This is called a letter of hardship and should include your reasons for being in such financial difficulty, as well as your request for a modification to your existing loan to help ease the pressure while you get back on your feet.
Writing the body of the hardship letter In the first paragraph, state that you are requesting a loan modification. Explain the financial hardship that prompts you to make the request. I am writing to you because I need to reduce my monthly private student loan payment due to a financial hardship.
I am requesting a payment that allows me to meet my other necessary living expenses. Please conduct a review of my account to determine whether I am eligible for an alternative repayment plan.Writing a loan modification hardship letter