Writing a good hardship letter to your lender should specifically outline the reasons for being delinquent with your mortgage payment, and it should also outline how getting a new lower mortgage payment will help you and your lender out. Construct your hardship letter similarly to the way you would construct a convincing business letter, you may also view a business letter format for examples. The reason why I say this is because, lenders are in business to make money and not just to make thing easy for you; this is obvious, yet many homeowners think lenders are here to help them out, and they have no other concerns. Lenders have overhead, employees, share holders, business expense, and so your expectations has to make sense to them. So it will be your job to convince your mortgage company into giving your a mortgage loan modification with the tips below; and the best way to do this is articulate your circumstance in a realistic and convincing way.
If you want do modify your mortgage, be honest with your mortgage company; Give detailed reasons why you are past due with your house payment. Don’t just say you need a loan modification because of the current economy, or that you need it because a lot of people are getting a modification and you should too. Be specific with your personal situation and how a modification will help you out and get you paying again. For example, let you lender know how the mortgage being past due is affecting you, your job if you have one, your family, your credit, and how working out a new lower loan will benefit you both. Lets say you are past due to the loss of a job or due to the loss of your spouses job, explain to your lender you and or your spouse are out on a regular basis and looking for employment, and as soon as you or your spouse becomes employed again you will start to try to make your payments on time; But you will need some help for now until you get on your feet. Understand that your mortgage company does not want your house, the would much rather see you in the property, and making your monthly payments on time to them. That is the main thing that a lender or a bank wants to see, because when you pay their loan is performing and making money for them. A mortgage company is not in business of managing properties, they are wanting to service and collect on mortgage payments, grant mortgage loans, among other duties that do not necessarily relate to managing foreclosed properties. When your loan is not performing, meaning you are not making your payments regularly to avoid going 30 days or more past due, they are loosing money. Lenders will go to great lengths if it makes sense to modify a loan. When they modify a loan the loan starts to perform once again for them, and payments are coming in again regularly, and everyone benefits.
Mortgage companies are overwhelmed with the number of homeowner that are needing help right now, and there are major overhauls being done to mitigate losses and get loans to perform again. Regardless, your hardship letter to your lender can have a great impact on the out come of your loan modification request. Always give good solid reasons why you should be helped out when compared to the masses. Be personal, communicate well because they really want to help you if it makes sense, and in turn help themselves at the same time. Think of this as a good business proposal and prepare it just as if you were preparing a business letter. Outline what you and your family are experiencing, what modifying your mortgage will do for you and them, discuss your future plans if your loan gets modified as far as making your payments on time and the positive effects of that for you both. Your approval is not based on your credit report or credit score. Your lender wants to know what other obligations you have, other mortgages, income, etc. and this is why these two forms are essential along with your other documents.
Documents such as your last tax return, utility bills, pay stubs, bank statement, award letter and profit and loss statements if that pertains to you. Plus, they will usually ask for prove of other thing you may have disclosed to them. Such as child support proof, disability, unemployment award letter, etc. So if you advise your mortgage company in your mortgage hardship letter or over the phone that you are receiving some income or anything like that, do not be surprise when they ask for proof; every income must have proof. Believe me, I have helped to modify countless home loans already, and I enjoy giving any all the helpful advise I can give to do my part in keeping homeowners in their homes nationwide. I have always said if I can help save 1 home a day from foreclosure then I am happy with that because that is helping to preserve home ownership. The one thing I can tell you is that things are changing rapidly, and regularly in the mortgage industry, and I’m fortune to be on the forefront of these changes. A loan modification program that is here today, may not be here tomorrow, and all the programs are constantly evolving. Think about all of these things when constructing a good mortgage hardship letter, and think of it as you would thing of writing a good business letter and construct it that way.
