Effective Hardship Letter Help You Mortgage Loan Modification

Effective Hardship Letter Help You Mortgage Loan Modification

Q:Sample of Hardship Letter?

A:To Whom It May Concern:The purpose of this letter is to make you aware of the circumstances that caused the delinquency on our loan. The current hardship is due primarily to loss of income – previously committed bonuses and pay raises were cancelled at our place of employment. In addition, unanticipated medical costs not covered by insurance, and skyrocketing childcare costs in our area (we had another child two years ago) have made it difficult to meet our financial obligations. We have already placed our student loans in forbearance in an effort to continue to meet our mortgage obligations.

We intend to do whatever is necessary to keep our home. We have taken steps already in trying to find a solution for our current hardship. Our first step was to contact SurePath Financial Solutions (SurePath), a HUD-approved non-profit organization accredited by the COA and the National Foundation for Credit Counseling. We have entered a Debt Solvers program through SurePath to reduce our payments and eliminate our consumer debt within five years. We are also working with a Certified Housing Counselor at SurePath, specializing in helping homeowners in our situation. We ask that you consider the following requests in evaluating our application for a loan modification.

Revising our Variable Interest rate to a Fixed Rate, ensuring stability in our payment obligations. In six months time our current mortgage will revert to a variable rate, and in anticipation of that, we ask for modification now.Possible reduction of principle. Our current mortgage is upside down due not just to drops in property values but also to negative amortization.

This property is our home, and we hope to stay in it, responsibly making our payments, for years to come. Please help us find a favorable solution.

Thank you for your consideration.Sincerely,

In spite of loan modification, if someone missed on their monthly repayment, it is only due to sheer bad luck. There are several methods in which you can make use of loan modification. To begin with, you can submit a hardship letter the moment you miss out on your monthly EMI. This is the base on which entire loan modification process will be developed.

A well written hardship letter is the first step towards procuring mortgage loan modification. Few tips that can guide you in preparing this letter are stated below:

• The letter should be simple and to the point.
• Letter could be either hand written or typed but must be simple and easy to understand.
• Letter should include all your financial details like monthly income, expenditure and other financial limitations.
• Sufficient proofs need to be attached in support of the reasons stated in the letter.
• This letter should depict your earnest and sincere efforts in protecting your property.
• This letter should also include the corrective measures taken by you to improve your financial position.
• How long is this financial crunch going to sustain? This should also be mentioned in the letter.
• This letter should be sent to the letter using a certified mail service and borrower should always retain the receipt for further communication.
• Bower should also have clarity in the kind of mortgage loan modification he is looking for and his comfortable monthly EMI.

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