Loan Modification - Harship Letter

To obtain a loan modification from your lender you must show that you have encountered a financial hardship that prevented you from paying your mortgage. The hardship letter is how you communicate the exact nature and type of hardship that prevented you from being able to pay your mortgage and explains why a loan modification is appropriate for your situation.

Types of common financial hardship that Homeowners encounter

• Divorce
• Death
• Natural Disasters
• Loss of income
• Medical problems
• etc

When a Homeowner wants a loan modification the lender will request a hardship letter from the Homeowner. The hardship letter is how the homeowner claims the type and severity of the hardship and any relevant descriptions or explanations. Supporting documentation of the hardship should also be included along with the hardship letter.

It is vital to a homeowners efforts of obtaining a loan modification that they provide a solid hardship letter submission. It is hard for the lender to justify the authorization to stop foreclosure or agree to review a homeowners eligibility of obtaining a loan modification if the homeowner has not shown a hardship for the cause of default.

Hardship Letters Need to Clearly Communicate the Following

• Identify the severity of financial hardship and the exact nature of the hardship
• Intentions and desire to keep and maintain the mortgage and the home
• Steps taken and steps to take in the near future that will improve your financial situation
• A loan modification will benefit both you and your lender

Preparing and Writing a Hardship Letter

• Gather your thoughts, dates and info, and any supporting documentation
• Your hardship letter should be typed
• The length of your hardship letter should be about 3/4 to 1 page only

Optimal Structure and Format of a Hardship Letter

• Structure - 3 sections or paragraphs
• 1st paragraph should explain the basis of the hardship and give a clear concise picture of what caused or will cause you to default on the current mortgage agreement.
• 2nd paragraph should be your current situation, expected future situation, and explain why it makes sense to give you a loan modification
• 3rd paragraph should inform the lender of how much you desperately wish to keep your home and that you are dedicated to making good on your debt to the lender.

Quick Hardship Letter Tips

• Keep in mind the notion that your mortgage lender does not need to give you a loan modification. Always keep a consistent and polite tone through out the entire hardship letter as well as any other communications between your self and your lender. You are asking them for a favor, remember that.
• Submit the letter by email fax, or just plain email.
• Use a Sample Hardship Letter Template as guidance
  

Attention Homeowners!

_{The following is an announcment to inform Homeowners of the Obama mortgage assistance program}

Making Home Affordable Loan Modification and Mortgage Refinance Programs Available

The Obama Administration's plan known as the Make Home Affordable Loan Modification and Mortgage Refinance Plan has already helped close to a million Homeowners (approximately 600,000 - 700,000).

There are of course qualifications that Homeowners must meet in order to receive assistance through the government mortgage assistance program.

Learn More at the links below

Making Home Affordable Qualifications