A good hardship letter to your lender should specifically outline your reasons for being delinquent with your mortgage payment, and it should also out line how getting a new lower mortgage will help you and your lender out. Construct your hardship letter similar to the way you would construct a convincing business letter, you may also view a business letter format for examples. The reason why I say that is because, lenders are in business to make money and not just to make everything easy for you. That is obvious, yet many homeowner think lenders are here to help them out, and they have no other important concerns. Lenders have overhead, employees, share holders, business expense, and so your expectations has to make sense to them.
When you are doing your loan modification, be honest with your lender; Explain the reasons why you are behind with the payments in detail. Don’t just say you need a loan modification because of the economy, or you need it because a lot of people are getting them and you should too. Be specific with your personal situation . For example, let you lender know how the mortgage being past due is affecting you, your family, your job if you have one, your credit, and how working out a new lower loan will benefits your both. Lets say you are past due to the loss of a job or due to the loss of your spouses job, explain to your lender you or your spouse is out on a regular basis and looking for employment, and as soon as you or your spouse becomes employed again you will start to try to make your payments on time; But you will need some help for now until you get on your feet. Understand that your lenders does not want your house, the would much rather to see you in the property, and making your monthly payments on time to them. That is the main thing that a lender or a bank wants to see. A mortgage company in business of managing properties, they are wanting to service and collect on mortgage payments, grant mortgage loan, among other duties that do not necessarily relate to managing foreclosed properties. When your loan is not performing, meaning you are not making your payments regularly to avoid going 30 days or more past due, they are loosing money. Lenders will go to great lengths if it makes sense to modify your loan. When they modify a loan the loan starts to perform once again for them, and payments are coming in again regularly.
Many lenders are overwhelmed with the number of homeowner that are needing help right now, and a major overhaul is being done to mitigate losses and get loans to perform again. Regardless, your hardship letter to your lender can have a great impact on the out come of your loan modification. Give them good solid reasons why you should be helped out when compared to the masses. Be personal, communicate well because they really want to help you if it makes sense, and in turn help themselves. Think of this as a good business proposal and prepare it just as if you were preparing a business letter format. Outline what you and your family are experiencing, what modifying your mortgage will do for you and your lender, discuss your future plans if your loan gets modified as far as making your payments on time and the positive effects of that. In conjunction with the 2 free forms at http://www.mortgagecrisistips.com/mortgagesecrets.html, you can also provide a well written hardship letter to go with these two forms. Remember, there is a credit check but it is primarily to see your other obligations you have. Your approval is not based on your credit report or credit score. The lender wants to know what other obligations you have, other motrgages, income, etc. and that is why these 2 forms are essential along with your other documents. Documents such as your last tax return, pay stubs, utility bill, bank statement, award letter and profit and loss statements if that pertains to you. Plus, they will usually ask for prove of other thing you may have disclosed to them. Such as child support proof, disability, unemployment award letter, etc. So if you advise your mortgage company in your mortgage hardship letter or over the phone that you are receiving some income or anything like that, do not be surprise when they ask for proof. Believe me, I have helped to modify well over a thousand home loans already, and I enjoy giving any all the helpful advise I can give to do my part in keeping homeowners in their home. I have always said if I can help save 1 home a week from foreclosure then I am happy with that. The one thing I can tell you is that things are changing rapidly, and regularly. A loan modification program that is working today, may not be here tomorrow. Think about all of these things when constructing a good mortgage hardship letter, again think of it as you would a good business letter format.
Be concise, honest, direct, and realistic with your hardship letter. Try to explain to your lender what it is that you are looking for. Be specific if you can. Tell them the amount of payment that would work out well with your budget. Do not ask for too much and be unrealistic. Ask for enough, and sometimes it can work out in your favor, or at least sway you lender’s decision while they are reviewing you. Believe me, you mortgage company is taking a small loss for working something out with you. They are several government programs available to assist lenders that will compensate them fairly well, at least when you look at the other option, foreclosure. Make your hardship letter count and make it say something that stands out from the rest. Do not lie, because that wrong, and they require a lot of proof these days so that could back fire on you and mess up your chances. If you have someone who became disabled in your home, someone who passed away , a divorce, mentally challenged child/spouse, or anything else that might be beneficial to your during the review process of your hardship letter, be sure to mention it. Anything that may benefit your should be highlighted during their review of your loan modification hardship letter review.
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