The economy is tough right now, and there are people that are having lots of different challenges. If you are having issues with your loans, you may need to write a loan modification letter.
It is a legal letter in which you describe your current financial hardships to your loaner and state the steps that you have are taking in order to solve your fiscal issues.Like any other piece of official correspondence that is written with the aim of getting a ‘favor’ from another party, how you go about writing your mortgage hardship letter goes a long way towards determining how the letter is received at the other hand.
Before even getting into the mechanics of writing the mortgage hardship letter, it is important to first have a self-assessment session: where you assess the actual state of your finances, especially what you have coming in(in form of income) and what you have going out, in form of expenditure. Having seen where you currently are, financially, you might also want to know how and why you actually got to that position – and this calls for something in addition to self-assessment: namely deep soul-searching. This is important, because the worst thing you can do is write a mortgage hardship letter, indeed have it received favorably followed by the mortgage company ‘working out’ something for you: only for you to flounder again.
Having worked out the latest state of your finances, and how you got yourself there, comes the writing of the letter, and you need to know exactly what you are asking for. Would you desire the mortgage company to give you a little more time to clear your obligations with them? Would you – in the event that you feel completely cornered – want the mortgage company to allow you to sell your house, and use the proceeds to pay your responsibility to them? What exactly is it your want to achieve through your mortgage letter…if you know where you are trying to go, you run a better chance of steering things your way.
You must clearly describe the reasons that have led to your latest financial hardships. Examples include losing your job, illness, marital separation, job transfer, etc. Also, you must also clearly state the steps that you have taken in order to correct these hardships.The loaner really needs to feel that you are making ammends to fix the situation. The lender is mostly concerned that they either get their money, or mitigate their losses.
Lastly, make sure all the information you provide is accurate. You must not make up a false story with fictitious details. It is very likely that you will be asked to provide proof of your complete income and financial corroboration. Writing false statements can cause many issues in the future, so keep it real.
Take the time to understand your rights and if you need to file a credit dispute letter. Learn more about and get sample hardship letters.
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