How Can You Create an Effective Hardship Letter for Loan Modification?

Loan modifications could be requested by you, once you are experiencing problems in repaying your loans for whatever reasons. The hardship letters for home modifications are given to the creditors having the content of explanations why you are experiencing difficulties and include a request to give you ways to ease your present situation.

This hardship letter is one of the important requirements for loan modification process. Your attorney will be asking you to have one to be included to your necessary financial documents. The attorney will then try to evaluate your current situation as well as the factors that cause the hardship and present to your creditor in behalf of you.

While you are writing the hardship letter, always remember that lenders will find the reasons of your delay and why you are not able to pay your monthly mortgage. So you need to be straightforward and honest so that the lender will consider your request.

You have to make your hardship letter for loan modification straight to the point. Most creditors do not like to spend more time in reading hardship letter, so if possible compose a 5-minute letter to read. Creating a single page letter is the best, because if you will go further, the lender might not read it all and can possibly skip the most important part of the letter. To do this, remove the unnecessary details and include only the important ones.

Start your letter stating the purpose why you are writing the hardship letter. Tell the creditor that you request them to modify your loan and give them the reason why. After that intro, you can write in the next few paragraphs the important details.

Make sure that you are creating a letter that explains the hardship that you are suffering and make sure that they are valid financial hardship. The valid hardships are natural disasters, unemployment, extensive medications, or divorce that caused you not able to pay for the mortgage.

Close your letter by informing the creditor again about the purpose and you only have this option to stop the foreclosure. Also make sure that you have all the intentions to pay the regular payments when your loan will be modified. Be humble and end the letter with gratitude and anticipation about doing business with them.

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