How to write a convincing hardship letter for a mortgage modification

Wells Fargo Mortgage Modification Publisher: Homeowners can use this plan to get more affordable monthly mortgage payments through mortgage modification or refinancing.

How to write a convincing hardship letter for a mortgage modification

Finance Articles February 29, A letter of financial hardship is the first essential step on your way to loan modification. In order to write a credible and effectual letter of hardship it is imperative to follow set guidelines and avoid certain details.

Loan modification is highly sought-after by many homeowners as it offers attractive terms to include lower interest and lower payments.

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However, not all homeowners qualify for loan modification under HAMP, but only those in severe financial hardship. In addition, lenders are not required to offer loan modification, and in order to convince them to soften up the loan terms you need to be very persuasive.

The best way to persuade your loan servicer and get loan modification is to write a convincing letter of hardship. There are certain things that your letter should contain, as well as the ones it should not. Things To Include In order for your letter to be most effective, it should be written according to the following guidelines: Make sure you specifically list your request for loan modification consideration under HAMP.

In order not to waste your time, make sure you meet the basic criteria of Home Affordable Modification Program first. If you do not, a lender is not obligated to review your request. Keep your letter straight to the point. Like employers, banks look through hundreds of hardship letters every day, and if your letter is too long or misses relevant information, it would end up in a trash bin without being read.

Include valid reasons of why you think you are eligible for loan modification. List your hardship reasons, whatever they may be: Briefly explain why your home is so important to you. Things To Avoid There are certain things you should not include in your hardship letter, as they would greatly reduce your chances of being considered for HAMP.

Never write any of the following: Do not blames anybody for ending up in a situation you are in. Many people try blaming the bank employees or mortgage brokers.

You should mention unforeseen circumstances and show that you have done everything you could to prevent foreclosure. Do not make any threats. Banks have good lawyers and hate people threatening to sue them.

how to write a convincing hardship letter for a mortgage modification

Any mentioning of a lawsuit would cause a negative reaction that you do not need. Never mention that you can afford the payment, but just want to avail from lower interest rate HAMP features.

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In case you would be considered for HAMP, the bank would find out the truth anywayso what is the point? A letter of hardship is the first important step on your way to loan modification. Make sure you understand how vital it is for your well-being. Always make sure you use short power verbs and sentences that are persuasive.

Proofread and change your letter of hardship as many times as you see necessary. Free Articles from ArticlesFactory.Writing a mortgage hardship letter is the best way to let the organization that has lent you the money know, that you are in a financial crunch at the moment.

Asking for a mortgage modification is a good way of handling this problem. The Mortgage Hardship Letter – A critical step in applying for forbearance, modification, interest rate reduction, and principal reduction to your mortgage. Here you explain changes in your financial situation, what you are doing to solve the problem, and what you would like your lender to do.

35 Simple Hardship Letters Templates [Financial, for Mortgage, for Loan Modification] A document that explains your circumstances in a certain situation, a hardship letter . A hardship letter is a critical element of efforts to convince a mortgage company that your circumstances merit further consideration and to persuade it .

Example Letter to a Mortgage Company Requesting a Loan Modification November 2, If continuing to pay on your mortgage has become a hardship, as it has for millions of homeowners, you have some choices.

It should show that you meet all the lender’s eligibility requirements and convince the lender that you’re committed to a long-term solution and able to follow through. Reviewing a sample hardship letter. You should keep your hardship letter short — one page is plenty.

How To Prepare A Hardship Letter