With the number of foreclosures reaching record levels each month, homeowners are desperately searching for options that can help them save their homes. One of those options is a home loan modification. Although the requirements for obtaining a mortgage modification are not as strict as the requirements for refinancing, a mortgage loan modification hardship letter will be a deciding factor. Therefore, it is important to know the do’s and don’ts of a mortgage modification hardship letter well in advance to avoid costly mistakes.
Behind
Make sure your letter includes your full name and current address and other current contact information so the lender knows who is applying for the home loan modification and how to contact you.
Clearly and explicitly state your current financial condition and the factors that led to it. It is important to mention why you are requesting a mortgage modification. You must also show the bank that you are a valid candidate for a mortgage loan modification. So be sure to keep a polite tone in your letter after the financial institution is doing you a favor by renegotiating the terms of your mortgage.
You must prove to the bank that you are trustworthy and responsible, and if you are granted a mortgage loan modification, you can and will make the monthly payments.
Whose
It is important NOT to make your mortgage modification hardship letter too long. There is a good chance that the person handling your case has heard all the possible reasons for applying for a home loan modification. Also, while issues like death in the family and divorce or separation do qualify as valid reasons for requesting a mortgage modification, it is imperative that your letter not be overly emotional.
Also, don’t mention other loans you may have defaulted on; you are supposed to project the image or a responsible person who will meet the monthly payments if a mortgage modification is granted.