Tips for Writing Hardship Letter for Loan Modification

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.Hardship Loan for Loan Modification

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:

  • 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.
  • 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.
  • 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.
  • Offer your lender a clear plan of how you intend to get back on track
  • 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.

You might also like

Tips For Writing a Good Hardship Letter for Home Mortgage Modification When you have to apply for a Home Mortgage Modification, then what you have to do is that you have to...
Second Lien Modification Program Sometimes, the second mortgage loan increases monthly payments and bills. Thus the second lien modification...
4 Reasons To Choose Loan Modification Over Bankruptcy Bankruptcy is a legally declared ability of an individual or any organization who has to pay it's creditors....
Fundamentals of Repayment Letters This letter describes the procedure of repayment of mortgages. You can request a repayment letter only...
Things To Remember About Federal Loan Modification Program In this hard time of financial crisis when economy is still trying to recover from the economic recession,...
Debt Consolidation Companies

People who liked this Post also read

  • No Money Down Home Loans
    The article provides sufficient information about the No Money Down Home Loan. It also gives the necessary tips to get the best one and the one that is just meant for the person reading it....
  • Credit Card Debt Relief
    Some times calling to your credit card company does not guaranty any positive result. Usually, they are not ready to compromise at all. But sometimes it is possible only if you are successful to assure them of your deplorable financial condition. Try to c...
  • How to Find a Foreclosure Specialist
    Foreclosure is the legal option that is normally used by mortgagee, if the mortgagor crosses the stipulated time in agreement and is unable to make payment. Hence, the house owner tries to find the services of some foreclosure specialist to assist him in ...
  • Basics of Second Mortgage
    Second mortgage is a good option for those who are facing financial problems and are in urgent need of cash amount.The major drawback of second mortgage is that borrowers are more likely to lose their home ownerships if they fail to pay off their first an...
  • Mortgage Refinance Checklist
    Print the mortgage refinance checklist and try to fill it. In the process of filling the above checklist, you will get the fair idea of the savings and other benefits of each mortgage refinance option you are being presented with at any point in time. It...


is an experienced IT Consultant turned Blogger, Interested in Technology, Personal Finance, Humans and Life...You and discover more about him by following RMak on twitter.

One Response to “Tips for Writing Hardship Letter for Loan Modification”

Leave a Reply

© 2011 Loan Mortgage Credit!. All rights reserved.