OK, so you've decided that pursuing a loan modification is the course of action you need to take in order to save your home from foreclosure. An important thing to bear in mind is that all loan modification applications are not created equal. It is entirely possible to take steps to ensure that your application is as effective and accurate as possible. An important part of your application is your mortgage hardship letter. We're going to take a look at what you can focus on when crafting the best hardship letter you can. What we're dealing with here is getting you the loan modification help that you need.
- State Valid Reasons – Be sure to specify exactly what circumstances you are facing that are resulting in your financial hardship. These could include things such as losing your job, huge medical bills, an injury that has left you unable to work, being the victim of mortgage fraud, a costly divorce, reduced working hours, etc. You have to be able to demonstrate that you are facing a situation that is beyond your control, and that is too overwhelming for you to deal with financially based on your current circumstances. Also confirm your intention and desire to save your home, and your commitment to do whatever is within your power in order to achieve this.
- Keep It Brief And Informative – Bear in mind, your letter will probably (at least initially) land on the desk of someone who deals with many of these kinds of letters on a daily basis. You don't want to lose the attention of the person you are addressing right from the start as a result of a letter that is too longwinded. One page ought to do it, two at the very most. Be sure to stay on point and keep the content punchy, while ensuring that your letter is informative and communicates all the relevant information as part of your mortgage modification application.
- Be Courteous – Going into mud-slinging mode or playing the blame game is not going to be of much service to you at all. Make a point of expressing your appreciation to the recipient of your letter for their time and effort in considering your request and circumstances. You'll want to convey a professional and mature attitude, even while sharing about very difficult and painful circumstances. Your lender is more likely to respond positively to someone who is determined to find a solution to their problems, rather than just feeling sorry for themselves.
- Include All Relevant Documentation – Be sure to include appropriate documentation such as your bank statements, income tax statements, current pay stubs, as well as your W-2 or tax return. In most cases you'll also have to provide details of your monthly expenses. Be thorough. Of course, it is assumed that you would have eliminated all luxury consumer expenses by this stage. Displaying a current cable-TV subscription is not going to help your cause if you're attempting to demonstrate genuine financial hardship. You therefore have the responsibility of making sound, even difficult decisions that show your sincerity in desiring to secure a sustainable financial situation. Doing so will strengthen your mortgage loan modification application.
- A Copy Of Your Credit Report – It's Important to keep this item handy so that you can compare it against what information your lender has, to identify any errors. It's not uncommon for lenders to base their assessment of a loan modification application on a credit report that contains inaccuracies. Don't take their word when it comes to the information they are using to determine your eligibility for a loan modification. If you are armed with a current and accurate credit report, you greatly minimize the risk of your application being denied unjustly, something that happens far too often.
Be thorough. Be positive. There is very little that can not be achieved when tackled in an intelligent and methodical way. Being approved for a loan modification need not amount to a completely nightmarish experience. Do you have any mortgage hardship letter tips to share that have proven useful for you? We welcome your input on on Twitter, Facebook, or Mycaal.com.