Author : Jonathan Gillham
One of the key parts of a loan modification is the hardship financial letter. Most lenders will request a hardship letter when you apply for a loan modification for a mortgage account in arrears. The hardship letter is a written account regarding the circumstances that caused you to get behind in your mortgage. It will also give keys facts to the lender to help you keep your home from foreclosure.
The hardship financial letter is basically story of how you got into the financial predicament and the events leading up to your present state of solvency. It will tell the lender's key person, the loss mitigator, the details of the problem and help them decide what to do to help you either keep your home or go for a short sale. This means that the lender might let you sell it for less than the mortgage value. It also will alert the lender as to how far you are willing to go to help with the process.
In order to get all the facts straight about your circumstances the best way to write a hardship financial letter is by following an example that has proven successful. By following a good letter you will make sure that all the bases are covered and that the loss mitigator has all the facts to help you.
A hardship financial letter is basically a concise outline of what the loss mitigator needs to know. Since these people are very busy you want to give them just the facts. Keep emotion out of it and don't go off on a tangent with blame.
Here is a list that convey hardship in a financial letter:
Three Most Common Financial Hardships:
1. Adjustable Rate Mortgage Reset
2. Family illness
3. Loss of job
Other Common Hardships:
4. Change of income downward
5. Failure of a business
6. A relocation for work
7. Spousal death or that of a cashflow contributor
8. Penal incarceration
9. Divorce proceedings
10. Military call out
11. Heavy medical bills
12. Damage of home due to natural disaster, accident or fire
13. Any other hardship items
The hardship financial letter is only one instrument in the loan modification process but it is the one that will get the attention of the loss mitigator. To proceed with writing one it is best to get an example to follow. In this way you will get it right the first time and be on your way to financial recovery through a loan modification.
FREE Financial Hardship Letter
You can receive a hardship financial letter by visiting:
http://www.hardshiplettersample.com/
Which provides you with valuable resources including:
- Free Mini Course on how to stop foreclosure and save your home
- Up to the minute information you can use to keep your home
- Free sample hardship letter
Article Source: http://EzineArticles.com/?expert=Jonathan_Gillham.
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