Loan Modification Hardship Letter – 3 Important Aspects to Include in Your Letter

Often homeowners attempting to escape burdensome mortgages that they are unable to pay are unable to do so because they do not have the expertise to write a compelling loan modification hardship letter. One’s bank requires you to demonstrate the reasons why one should be considered for a loan workout. In order to achieve this, the best course of action is to provide a concise, detailed letter containing the 3 aspects which are detailed below.Following an outline for your letter is the best course of action because it allows for both the organization of one’s thoughts and ensures that there is a structural basis of your letter that covers everything that one’s bank requires to make a decision. The following paragraphs detail the 3 aspects mentioned previously that will ensure your bank understands your position and empathizes with you.1. What sort of financial problems led you to send this letter? It is important to provide a concise explanation for the occurrences that led to the problems. For example, if you were laid off or forced to take a reduction in income or medical problems have inflated costs of your health care, or if you had a rate change on your interest, you should include this in explanation.2. Include information pertaining to the timing of your problems. This is important if you are behind on payments, you need to relate this to when your financial issues took place. Or, if you face defaulting soon, provide your lender a timeframe of when that will occur. Your lender needs to realize that your problems arose due to circumstances that you were unable to predict or circumnavigate, and you are attempting to meet your expenses as best as possible.3. Detail any cost saving plans implemented to maintain the new expenses as well as concerning yourself with expressing that you wish to stay in your home and have no wish to default. Make sure to tell your lender about new budgets, novelty costs you have forgone, like restaurants, expensive cars, golf club or country club payments, etc.Don’t forget, a loan modification hardship letter allows you to explain your lender your situation, and you should be sure to detail the story concisely but at the same time in a way that makes them empathize with you. Talk about what you do in your community in order for the bank to comprehend that it is both beneficial to you and your community if you stay in your current home. You deserve to have a loan workout, take your time to learn the tricks of producing a successful letter now.

Source by Lindsy Emery

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