When you apply for mortgage modification, you have to send a mortgage modification hardship letter to the lender. The lender reviews your mortgage modification hardship letter in order to determine whether or not to approve your mortgage modification application. This article highlights 5 useful tips that can help you in writing a perfect mortgage modification hardship letter.
Tips for writing a perfect hardship letter
The 5 useful tips that can help you in writing a perfect mortgage modification letter are given below:
1. Why you need mortgage modification: In the first paragraph of the mortgage modification hardship letter you need to explain why you need mortgage modification in the first place. You should state your reasons in a clear and concise manner. You must convince them that with the help of mortgage modification you can pay back your current loan.
2. Give correct information: You should write down your total outstanding balance, interest-rate of the loan, your monthly income, and expenses in the mortgage modification hardship letter. You have to attest some necessary documents with the letter. Make sure that those documents are authentic.
3. Explain your current financial situation: You should explain your current financial situation accurately. You should explain the reasons (sickness, reduced income, failed business, job loss, divorce, medical bills, and etc) for your delay in making the mortgage payments. You can write down the details in bullet form.
4. Credit history: In the hardship letter, you must write down about your credit history, your payment history with the mortgage company. If you have made regular mortgage payments, then stress on that point. If you have made late payments once or twice, then explain the reason for your delay.
5. Be honest: You should be honest in your letter. You must inform your lender that it is very important for you to keep the house. You should also explain that mortgage modification is the only option left for you. You must convince them that you will be able to make payments after your mortgage loan gets modified. Also, you can explain the steps that you are taking in order to improve your current financial situation.
6. Be brief: The mortgage modification letter must brief and to the point. The letter should be within few pages. Lenders receive thousands of hardship letters each month. They simply don’t have time to read long letters.
Finally, your mortgage modification hardship letter must convince the lender that you are a responsible borrower. However, don’t forget to put your signature at the end of the letter.