Writing a Loan Modification Hardship Letter

While meeting the requirements for a home loan modification, do not neglect to focus on the Hardship Letter without which many lenders will refuse to give a loan modification. Essentially, this is a lot like the cover letter which many people include when applying for good positions at wealthy companies or other prestigious jobs. Unlike those, which cover the writer’s interests, strengths and willingness to work, a hardship letter must include information about the writer’s current financial situation, other obligations and proven inability to continue paying for a mortgage using current rates.

Remember, the idea is not to get out of paying for the property but simply adjusting the monthly amount so foreclosure is not forced upon the homeowner. While the writer may want to include spurious amounts of detail and background, lenders are used to getting hardship letters. They’ve seen the pictures, heard the stories and know how people are suffering all over the country, even the world.

With this in mind, boring lenders with a length hardship letter is ill advised. Keeping the length of the letter short, to about a single page will get the best results. Writing must be professional, succinct and short. Don’t try to appeal to the emotions of these people; they’ve been trained to shrug off such entreaties and that’s the surest way for a home loan modification application to be denied.

The person paying for their home mortgage must still be able to reasonably pay for the newly negotiated amount every month. Consider the difficulty with which most banks grant a home loan modification.

Now, does it seem viable to assume they would do it twice for a single person? Of course they wouldn’t. The information provided and examples cited must be given with clear, concise proof.

For example, a death in the family can be a crushing blow to some of its members, including those who make the money which pays the mortgage. Depression is not uncommon and while getting medical help for the mental condition, a home’s earner could be out of work for a while.

This isn’t a permanent problem and some banks may be willing to renegotiate, considering this hardship. Some others are not so clear cut however.

 

What a Loan Modification Hardship Letter Does

People get fired all the time. It happens to the best of us and when it happens to homeowners with a mortgage to pay, most banks don’t really care. Yes, a loss of employment is a big deal and it affects the homeowner’s ability to pay for things, including the mortgage.

It doesn’t mean that person can’t find another job though. In this way, big banks are kind of like nagging parents who demand an out of work child get back into the world of labor as quickly as possible.

Certain, lengthy events like a long legal battle or extended military stay are both sure to grant some kind of reprieve from a financial institution. Obviously, what bank wants to be known as the one that screwed over soldiers on deployment?

Nobody can read minds in this world though so it’s crucial to supply information well ahead of time, before payments fall behind and while the people in power are still able (and willing) to do something about the bad situation. Getting the right legal help is a must.


Subscribe to comments Comment | Trackback |
Post Tags:

Browse Timeline


Comments ( 5 )

Hey, yeah, I agree.

Ty added these pithy words on Jan 09 15 at 1:05 pm

Good stuff. Thanks

Ty added these pithy words on Jan 09 15 at 1:07 pm

I need help getting my LEGAL OWNER TITLE for the Mobile Home I bought in 2003.

I paid off the Father of the seller. I have e-mailed the original person I bought the home from and ask him to Transfer the Legal Title to me. He will not answer my emails. When I bought this home he lied about the Heating Furnace and after a month of living here I had to buy a new one. Also, the Piping to connect the Cloths Dryer was illegal and I had to replace new pipes. So, I deducted one half of what I spent from the balance and sent a check. the check was cashed but I cannot get the Legal Owner Title in my name. So, I could never sell it. I NEED TO TALK TO A LAWYER ABOUT THIS ISSUE TO GET THE LEGAL TITLE. I COULD ONLY PAY A SMALL AMOUNT FOR HELP. THANK YOU FOR ANY HELP. Elizabeth

Elizabeth A. Brown added these pithy words on Jan 22 15 at 3:22 pm

My first question would be:

1) When you paid off the seller were they in agreement that you could only pay half of what was owed to satisfy the mortgage debt? If they weren’t they you still owe the balance. If they were, did you get it in writing.

2) Did you have the sellers permission to give the payoff funds to their father. If you didn’t then you have an additional dispute with whoever you gave the money to.

3) Have any of the parties told you that you are wither behind on the loan or have defaulted on the loan?

Remember, whenever you are talking about money, loans and mortgages it is CRUCIAL that everything be conducted in writing.

Attorney Load Mod added these pithy words on Jan 26 15 at 9:35 am

I had a modification until October 2014 I was told to wait for the letter after I applied for a longer modification I waited November 2014, December 2014 I called and found out I did not get the modification So I had to go back and pay 9.49% interest rate even though my hardship had not changed now I struggle to pay over half of my income on my mortgage. I talked to a financial institution about refinancing but because my score is low and I I live on an retirement income they won’t discuss it I want to work on my credit and get my score up but I need help legitimate help

SONDRA PRICE added these pithy words on Feb 21 15 at 5:04 pm

Add a Comment


XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*

Attorney Loan Modifications is not affiliated with the government, and our service is not affiliated by the government or your lender. 16 CFR 322.4(a)(1). The information provided in connection with foreclosure defense on this website should not be construed as legal advice. Past performance is not indicative of future results. While this firm will be working on your case ancillary work may be performed by other attorneys.

Loan Modifications and Federal Services. In order to comply with various federal and state laws, Consumer Defense may only submit a Qualified Written Request pursuant to federal law, including the Truth in Lending Act (TILA) 15 U.S.C. § 1601, et seq., the Fair Debt Collection Practices Act (FDCPA) and the Real Estate Settlement Procedures Act (RESPA), codified as Title 12 § 2605 (e)(1)(B) and Reg. X § 3500.21(f)2 of the United States Code, and provide federal review and monitoring of the client’s file for federal compliance (not state) purposes. Other than providing federal support as stated above, Consumer Defense cannot and will not assist with loan modifications, debt negotiation, and similar services. All loan modification, debt negotiation, and similar services, if any, will be submitted to Consumer Defense or other qualified non-profit corporation or local attorney.

No Guarantee. These testimonials or endorsements on this website do not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter or the scope of services now provided by Consumer Defense. We welcome your legal inquiries and look forward to hearing from you. Please contact us online or at (888) 980-7457 to set up a FREE CONSULTATION.

AttorneyLoanModifications | 8180 S. 700 E. #110 Sandy, UT 84070

Important MARS Disclosure
This site and it's content is the Property of Consumer Defense.
2016 Attorney Loan Modifications. All Rights Reserved. Privacy Policy and Terms of Use