For submitting loan modification application, your vital document to be submitted is the Loan Mod Letter or better known as the Hardship Letter. These hardship letters are very important as they will tell the lender why you had gotten into difficulty paying your monthly dues. Therefore they should present a clear picture of your current financial status.
This letter can provide you an opportunity to inform your lender about the situation of your difficulties as well as the steps you have been taking to deal with them. Make sure your reasons fall within the “acceptable hardship” list and will guarantee the lender that if given the chance to adjust your monthly dues, the home loan payments will be made on time from then on.
Some of the acceptable hardships from the lender’s point are listed below:
1. Loss of job or reduction in overall income
2. Death of the homeowner, spouse or family member causing additional expenses
3. Illness in the family causing unpredicted expenses
4. Divorce or separation
5. Forced job relocation by employer
6. Variable rate reset-payment shock
7. Increasing expenses (on basic necessities)
One or two of the above problems should be the cause of your dilemma. With thousands of homeowners submitting their applications, your hardship letter should be powerful enough that the lenders should not only read it but also consider your case.
Some valuable points regarding the loan modification process has been discussed below:
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Try to write a comprehensive and short letter. It should preferably be of one page or one and half if you think it’s needed.
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while describing your problem that are causing you to make your payments, make sure to indicate the exact date of the happenings so that the lender can relate them with your payment failures in the past.
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It’s also important to mention your steps to address the situation. If you or your spouse has taken additional part-time jobs, let them know. This can assure the lender that you are also trying from your part.
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Offer your lender a clear plan of how you intend to get back on track
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It’s very important to guarantee the lender that you are a responsible homeowner and convey your intentions regarding keeping your home. If are frequently involved in community activities or an active member of social organizations, tell this to your lender. It may seem unrelated information to you but your lenders interpret this as something that drives you to maintain your status and reputation in your social circles
A large number of people also face the same dilemma as yours, and are successful in getting loan modification process. You should not go for the services of loan modification specialists as they may charge you a huge fee for processing your letter. There are self-help kits that come with a complete guide and additionally on how to go about the loan modification process. They include forms that you can fill to help you produce a convincing hardship letters and impressive payment proposals plus comparative market reports on your property. Your lenders will love receiving this type of application package from you as it means a whole lot less work for them.
You just need a little self-help tool to be able to successfully modify your loan, instead of relying on someone else. Such tools can provide you a lot of useful assistance and can be easily found online.
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Posted by R. Mak in Mortgage Refinance · 1 Comment
Great Post!