Author : Susan V. Gregory
The very first criteria for a loan modification is a hardship situation. This usually means that due to circumstances out of your control you have lost income or have increased expenses, perhaps due to medical, divorce, natural disaster, etc. The bank wants to be certain that you are indeed a deserving candidate for a loan workout. Just because your neighbor got a 2.5% loan modification, is not a good enough reason for you to get one!
In addition to the loan modification hardship letter, the feds are so serious about only helping deserving homeowners and weeding out those who want to jump on the modification bandwagon, they actually have you sign an Affidavit. This is a standard form that you complete and sign under penalty of perjury. A section of the affidavit asks you why you are facing a financial hardship-you check off all applicable boxes. Another section has you sign stating that you have not intentionally missed payments in order to qualify for a loan workout.
You must also write a brief description of your actual situation. This is your chance to tell the bank what has transpired in your life to put you in your current circumstances. You want to write a compelling story-one that is sympathetic and gains your lenders cooperation-but it must also be concise and to the point. No need to write a novel-they won't read it anyway if it's too long!
A loan modification hardship letter and affidavit is the basis for granting you a loan workout. If you can prove to the bank with some type of documentation-say copies of medical bills or military deployment orders-that you ability to pay the mortgage has been affected, then at least they will be willing to review your application. It's really the whole picture that your bank wants to see-your current financial circumstances, your ability to pay and maintain the new modified payment, and how your budget fits into the program guidelines.
You can follow step by step directions to write a convincing hardship letter, complete your financial statements and include all the necessary documents by using a homeowner resource guide. This is a very serious process, and since your home could be on the line, make sure you do everything you can to be successful.
You can 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.
For more information about mortgage loan modification, please visit us at:
http://www.myloanmodificationcenter.com
Article Source: http://EzineArticles.com/?expert=Susan_V._Gregory.
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Thursday, October 22, 2009
Monday, October 19, 2009
Helpful Hints For Writing an Effective Hardship Letter For a Mortgage Loan Modification
Author : Miklos Roth
Your first hardship letter may be the most difficult document you ever have to compose. When you are faced with foreclosure, sometimes you have no choice but to ask for help. This can be stressful and even humiliating. However, rest assured your situation is far from unique. Homeowners across the country are facing the same tough decision. It's time to bite the bullet and start writing.
As the requests for leniency continue to flood the offices of lenders, you need to make sure your letter is read. This doesn't mean you will receive what you are requesting. Financial institutions can't say yes to everyone. Your hardship must be significant for your mortgage company to make an exception for you. However, if you don't know how to go about writing your hardship letter it may simply be rejected because the lender doesn't understand your situation.
Keeping Your Hardship Letter From being Rejected
First off, you have to make sure your mortgage company can link you to your specific loan in their system. Otherwise, they can't help you no matter how serious your financial problems are. Here is the crucial information that should appear at the top of your letter:
* Name
* Address
* Phone #
* Loan ID#
Next, state what you are requesting (mortgage loan modification) and why you need it. Detail what hardships you are experiencing that have caused you to ask for assistance. Respectfully ask for a face to face meeting to talk to a lender about your current situation. Remember to sign your letter.
If you aren't sure about your letter writing capabilities, ask for assistance from an attorney who has experience with home mortgage negotiations. This will ensure that your letter contains all the required information and is worded appropriately. Since your letter is a legal document that will be used to help determine if you should be exempt from foreclosure, you may feel most comfortable with this option.
Sending a well written hardship letter is critical!
Your mortgage is a legally binding contract that be easily modified. Calling or emailing your lender for help is insufficient. A formal letter requesting a review of your loan carries much more weight. It shows you are serious and willing to put your appeal in writing to start the process of mortgage loan modification.
The way your letter is phrased is also very important. You are not asking for a free handout. Instead, you are seeking to renegotiate the terms of your loan contract due to serious financial difficulties. This type of request needs to be professionally worded using proper grammar. It must accurately outline exactly why you are currently unable to meet your mortgage obligation. Don't make your letter lengthy or fill it with emotional appeals. Instead, just stick to the basic facts. This will make it less confusing to read (and easier to write).
What Qualifies as a Hardship?
Not every difficult life circumstance will be considered a hardship in the eyes of your mortgage holder. If you have the money to pay your mortgage but simply want to spend it on something else, this does not qualify. Here are a number of reasons that may be considered legitimate:
* Job loss, salary reduction, or relocation of employment
* Serious illness, disability, or significant medical expense
* Divorce or death of a spouse
* Increase in property taxes
* Military service
* Incarceration
There are also other circumstances such as the failure of a business that may qualify for special consideration. You need to make your case clearly based on your specific situation. This is another good reason to consult with an attorney before writing your hardship letter.
For more information on writing an effective hardship letter please visit: mortgage loan modification consultant
Article Source: http://EzineArticles.com/?expert=Miklos_Roth.
Read more!
Your first hardship letter may be the most difficult document you ever have to compose. When you are faced with foreclosure, sometimes you have no choice but to ask for help. This can be stressful and even humiliating. However, rest assured your situation is far from unique. Homeowners across the country are facing the same tough decision. It's time to bite the bullet and start writing.
As the requests for leniency continue to flood the offices of lenders, you need to make sure your letter is read. This doesn't mean you will receive what you are requesting. Financial institutions can't say yes to everyone. Your hardship must be significant for your mortgage company to make an exception for you. However, if you don't know how to go about writing your hardship letter it may simply be rejected because the lender doesn't understand your situation.
Keeping Your Hardship Letter From being Rejected
First off, you have to make sure your mortgage company can link you to your specific loan in their system. Otherwise, they can't help you no matter how serious your financial problems are. Here is the crucial information that should appear at the top of your letter:
* Name
* Address
* Phone #
* Loan ID#
Next, state what you are requesting (mortgage loan modification) and why you need it. Detail what hardships you are experiencing that have caused you to ask for assistance. Respectfully ask for a face to face meeting to talk to a lender about your current situation. Remember to sign your letter.
If you aren't sure about your letter writing capabilities, ask for assistance from an attorney who has experience with home mortgage negotiations. This will ensure that your letter contains all the required information and is worded appropriately. Since your letter is a legal document that will be used to help determine if you should be exempt from foreclosure, you may feel most comfortable with this option.
Sending a well written hardship letter is critical!
Your mortgage is a legally binding contract that be easily modified. Calling or emailing your lender for help is insufficient. A formal letter requesting a review of your loan carries much more weight. It shows you are serious and willing to put your appeal in writing to start the process of mortgage loan modification.
The way your letter is phrased is also very important. You are not asking for a free handout. Instead, you are seeking to renegotiate the terms of your loan contract due to serious financial difficulties. This type of request needs to be professionally worded using proper grammar. It must accurately outline exactly why you are currently unable to meet your mortgage obligation. Don't make your letter lengthy or fill it with emotional appeals. Instead, just stick to the basic facts. This will make it less confusing to read (and easier to write).
What Qualifies as a Hardship?
Not every difficult life circumstance will be considered a hardship in the eyes of your mortgage holder. If you have the money to pay your mortgage but simply want to spend it on something else, this does not qualify. Here are a number of reasons that may be considered legitimate:
* Job loss, salary reduction, or relocation of employment
* Serious illness, disability, or significant medical expense
* Divorce or death of a spouse
* Increase in property taxes
* Military service
* Incarceration
There are also other circumstances such as the failure of a business that may qualify for special consideration. You need to make your case clearly based on your specific situation. This is another good reason to consult with an attorney before writing your hardship letter.
For more information on writing an effective hardship letter please visit: mortgage loan modification consultant
Article Source: http://EzineArticles.com/?expert=Miklos_Roth.
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Writing a Successful Loan Modification Hardship Letter
Author : Adam Hefner
The bank is looking for three main things in your hardship letter and the better prepared you are to address them, the more likely chance you will have of being approved for loan modification.
An outline is a good place to start before composing the letter so that you can map out all the areas that you want to cover and not leave anything out.
First, tell that what happened to put you in this financial hardship. Did you lose your job? Was there a medical emergency or increased medical bills? Did you go through a divorce? Explain to your bank, being completely honest about it, how you got into the situation that you currently face in terms of struggling with or being about to struggle with making your monthly mortgage payments.
Second, explain to your bank about the timing surrounding these hardships. It will be in your favor if you can demonstrate that you've never missed a payment and never made a late payment until you met with adverse circumstances.
Third, create a plan that shows the bank what you're going to do to ensure that after loan modification you won't once again struggle financially. Create a budget and share this with your lender to demonstrate that you are taking your situation seriously and going to work on it proactively. If your family is going to make sacrifices in order to pull out of debt, such as giving up club memberships or foregoing a family vacation, tell the bank that as well. What you're trying to do is show the mortgage lender that you are committed to homeownership and will do whatever it takes to rise above your financial hardship.
The loan modification hardship letter is really the only opportunity you get to tell your side of the story and humanize it so that you're not just looked at as an account number or a credit history. Be compelling in your letter, but don't whine, complain, or start to place blame. Outlining your hardship story, the timing of events, your good faith efforts, and your recovery plan, in concise, believable, and sympathetic language will help you write a compelling letter.
For detailed facts and essential tips about writing a successful loan modification hardship letter, visit this simple, easy to understand loan modification guide and resource:http://HomeLoanModifications101.com
Article Source: http://EzineArticles.com/?expert=Adam_Hefner.
Read more!
The bank is looking for three main things in your hardship letter and the better prepared you are to address them, the more likely chance you will have of being approved for loan modification.
An outline is a good place to start before composing the letter so that you can map out all the areas that you want to cover and not leave anything out.
First, tell that what happened to put you in this financial hardship. Did you lose your job? Was there a medical emergency or increased medical bills? Did you go through a divorce? Explain to your bank, being completely honest about it, how you got into the situation that you currently face in terms of struggling with or being about to struggle with making your monthly mortgage payments.
Second, explain to your bank about the timing surrounding these hardships. It will be in your favor if you can demonstrate that you've never missed a payment and never made a late payment until you met with adverse circumstances.
Third, create a plan that shows the bank what you're going to do to ensure that after loan modification you won't once again struggle financially. Create a budget and share this with your lender to demonstrate that you are taking your situation seriously and going to work on it proactively. If your family is going to make sacrifices in order to pull out of debt, such as giving up club memberships or foregoing a family vacation, tell the bank that as well. What you're trying to do is show the mortgage lender that you are committed to homeownership and will do whatever it takes to rise above your financial hardship.
The loan modification hardship letter is really the only opportunity you get to tell your side of the story and humanize it so that you're not just looked at as an account number or a credit history. Be compelling in your letter, but don't whine, complain, or start to place blame. Outlining your hardship story, the timing of events, your good faith efforts, and your recovery plan, in concise, believable, and sympathetic language will help you write a compelling letter.
For detailed facts and essential tips about writing a successful loan modification hardship letter, visit this simple, easy to understand loan modification guide and resource:http://HomeLoanModifications101.com
Article Source: http://EzineArticles.com/?expert=Adam_Hefner.
Read more!