Loan Modification Hardship Letter - Accepted Format to Follow

Author: Susan V. Gregory

The very first thing your lender will ask you when you apply for a loan modification is "Are you facing a financial hardship situation? What has happened to make your current mortgage payment unaffordable?" How you present your case is critical to your successful outcome. This is your opportunity to explain just what has happened in your life to place you in the current circumstances. Make certain that you use the accepted hardship letter format so that your lender will be convinced to offer you the help you need.

A convincing and effective hardship letter for loan modification will follow this type of format:

Date

Name of Lender

Loan #

State your request for a loan modification. If you are trying for Obama's federal plan, then specifically ask for consideration for Home Affordable Modification. You can add "or any other loan workout plan we qualify for".

Use the next paragraph to given the general reason for your request. For example, loss of income, increased expenses, medical issues, natural disaster. Give the approximate time frame this occurred. Explain how this has impacted your ability to pay your current mortgage.

Then, give some details about how you have struggled to keep up-using credit cards to pay expenses, exhausting your savings, taking in a roommate, etc. Assure the bank that you have tried everything, but have no other options but to obtain a loan modification. This hardship letter should help the lender understand that you are motivated to save your home and are doing everything you can to find a solution.

Close your loan modification hardship letter by giving just a few brief details about your family-this will help gain your lenders empathy. For example, if your kids play sports, or if you are involved in your local church or community activities. You want to help the bank understand how important it is for you to stay in your neighborhood and make a personal connection with the reader of your letter.

Then, sign off with the name of all borrowers, property address and daytime phone number. Make sure all borrowers sign the bottom of this hardship letter. Double check it for any spelling mistakes. Try to keep it to one page if possible-short, descriptive and compelling is your goal.

Follow a helpful Hardship Letter Outline and get the help you need to apply and qualify for a loan modification by ordering and downloading the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Learn how to apply and qualify for the Obama federal program too. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

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