3 Tips for Loan Modification Hardship Letters
Posted February 3rd, 2009 by adminThe current state of the economy has paved the way for mortgage companies and banks to provide loan modifications to mortgagors. Instead of going through expensive foreclosure court proceedings, lenders present another option to help borrowers keep their homes and make the necessary payments at the same time. The mortgage process of loan modification features an overhauling of the terms and conditions stated in the loan. It re-institutes interest rates and eventually leads to lower monthly payments and extended loan term. In a nutshell, it provides hopes of being redeemed to delinquent borrowers sinking closer to the quicksand of foreclosure.
Borrowers who are burdened by subprime mortgages, bad credit, and home value depreciation are eligible for loan modification. Once mortgage lenders are already informed of the borrower’s intention to have his loan modified, necessary papers and documents should be furnished and turned in for the lender’s perusal. One of which is the hardship letter required to get a loan modification agreement. It is simply the borrower’s detailed explanation of his current financial difficulties including the reasons that led to his hardships in terms of money. Pieces of evidence and documents that prove such claims should also be given to the lender. All loan companies who offer loan modification require such letter and only those with valid reasons are granted this service.
So how do you exactly write a convincing hardship letter for your loans to be modified?
1. Exude a professional, sincere and humble tone in writing your letter.
Your lenders have heard every sob story there is and know every trick that borrowers have in mind. Begging for pity in your hardship letter is usually not a way to have them convinced. Lenders are usually very strict and unyielding to borrowers who appear too broke and dramatic about financial difficulties. Chances of being granted with loan modification are going to be slim if you include a farrago of overly stagy and melodramatic stories in your letter.
2. State reasons that include one or more of the following:
o Death of the family’s bread winner
o Major medical expenses
o Loss of income of salary deduction
o Property tax increase
o Serious illness
o Childcare expenses
o Unavoidable home repairs
The aforementioned are usually the ones credited by loan companies as valid reasons for loan modification. You should provide a clear explanation of the circumstances that led to your problem. Likewise include the aftermath that these problems have effected in your financial situation.
3. Your letter must be brief.
Don’t beat around the bush because your mortgage lender already has an idea of why you are initiating contact. Instead of trying to write a flowery letter with loads of adjectives and adverbs, concentrate on explaining your financial situation. That alone will get you far in your quest to having your loans modified.
By: Jen Franco Article Directory: http://www.articledashboard.com Jennifer Franco is a creative writer, teacher and freelance language editor. She writes about a wide array of topics including art, culture, entertainment, cars and loan modification.
Tags: Loan Modification Hardship Letters
One Response to “3 Tips for Loan Modification Hardship Letters”
January 15th, 2010 at 12:40 am
Hi nice job on the foreclosure lawyer site. It is really fantastic to see a site discuss legal loan modifications that help prevent foreclosures and reduce debt.
Leave a Reply