Some homeowners hear about the hardship letter they're supposed to send in with their mortgage modification application, but they do not think it's important and do not bother to write it. Truthfully, the hardship letter is just as important as the application itself. It can speed up the process and even be the one factor that makes the lender approve your application. The power of the hardship letter is not to be underestimated. Since so many homeowners are confused about the letter, I've constructed a mortgage modification hardship letter tutorial for anyone to use.
The first thing you need to wipe from your mind when getting ready to write the letter is that the letter is not your platform to express your general discontent with your lender. The point is to explain why you are having trouble with your mortgage and to convince the lender that you absolutely need the modification. Lenders accept a wide variety of reasons for falling behind, including but not limited to:
• Interest rate increase
• Death of a family member or spouse
• Tried to start up a business but failed
• Unexpected medical bills
• Loss of a job or loss of income
• Demotion at your job
Lenders do understand that things happen in life that are beyond your control, but without a solid reason for your accessibility to pay, they're not going to accept your application. And keep in mind that lying on the application or the letter is only going to set you back, not do you any good.
If you're reading this mortgage modification hardship letter tutorial, you've probably read others as well. Most do not get into this subject very deeply, but it's a particularly sticky one for many people: Your financial future. Your financial future is going to play a big part in whether you are accepted or not.
Lenders lose money on modifications and they need to know while lowering your interest rate is going to work out for them in the future. You may not have anything immediately to help you out, but think of something coming up that is going to be great news for your financial status. This could be a raise, a new job, starting a side business, a room mate – there are a ton of things you could think of. Use that as a going point for portion of you letter.
All in all, in your hardship letter you need to include why you've fallen behind on your payments, any special circumstances, the interest rate you would like and the reasons behind it, and how you plan to work with the lender. If you keep that in mind, you do not need a mortgage modification hardship letter tutorial when you actually sit down to write it. You're going to know what's wrong and what you need.