Write A Loan Modification Hardship Letter With Samples
Among the things your lender will ask for you to supply during the loan workout procedure is a loan modification hardship letter. A hardship letter is fundamentally a letter you write to your lender describing the scenario you’re in and you’ve defaulted in your mortgage. This bit of info is necessary that you have some chance in stopping your foreclosure.
Remember the person who reads your letter likely has many other customers they’re working with, possibly by the tons. Thus make sure when developing your letter, not to write a novel. Keep your fiscal scenario brief, perhaps 2 1/2 to 3 pages at the very.
The hardship letter is your support to your lender making them know you are able to maintain your house, but only not under your present loan you’re in. Keep in mind your lender will run your credit report additionally request all of your financial advice too and to discover all of the debts you have got, so remember to be as true as possible. The outcome for lying about your scenario in your hardship letter may result in mechanically being denied.
Here is an example record of adversities that lenders consider during the loan workout procedure:
- Adjustable Rate Mortgage Reset- Payment Stock (unusual, but we’ll find more lenders take this in the future)
- Loss of Occupation
- Reduced Income
- Neglected Company
- Occupation Move
- Death of C0 or Partner -Borrower
- Married Separation
- Military Obligation
- Reduced Income
- Medical Bills
- Damage to Property (natural disaster or abnormal)
- Other (Please Specify)
When you do potential research, assess your position and put down any notes on paper, it is time to compose the letter. Below is a fundamental example of how the letter should be written by you.
Don’t forget your hardship letter is just one bit of the loan modification procedure, but essential in assisting you to prevent foreclosure. There are several nerve-racking and more procedures hours you have to go through with your lender to be able to get this done.
Don’t forget to spend time to reason your hardship letter with a friendly not in the ending. The hardship letter is an important start to saving your house and becoming qualified for a loan modification. Don’t forget to compose with the best of your skills and keep a respectful and courteous tone.
Example Hardship Letter 1:
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
I’m writing this letter to explain my unfortunate list of conditions that have caused us to become delinquent on our mortgage. We’ve done everything in our capacity to make ends meet, but sadly we’ve fallen short and also would like you to consider working with us to change our loan. Our number one aim will be to maintain our house and we’d truly value the chance to do that.
The main reason that caused us to be late is (insert cause here and do not be overly drawn-out and long winded). Shortly after being late and our income not being enough to support our monthly payments, we’d dropped further and further behind. Now, it is to the stage where we cannot actually afford to pay what’s owed to (lender). It’s our full intent to pay what we owe. But at this time we’ve exhausted all our income and resources so we’re turning to you for assistance.
(The approximate date of adversity and we consider our scenario is Temporary or will be Long-Term.)
Our scenario has gotten better because (reason here) and we believe that a loan modification would help us both. We’d appreciate if you’re able to work with us to payment so we are able to keep our house as well as manage to make amends with your company and or lower or delinquent amount.
We genuinely expect we’re dying to get this settled so we can proceed and you will consider working with us.
Sincerely and Respectfully,
September 7, 2007
Example Hardship Letter 2:
To: Countrywide Mortgage Account # 00089942567
Re: Mortgage Modification Plan
Because of the recent adjustment to the mortgage I now have with your organization, I’m finding it very hard to manage the brand new payment. I’ve a 3 year fixed rate that is now flexible and is schedule to correct again in Feb. 2016.
After looking over my current income, there will probably not be any way I can manage the increased payments to come. Hopefully there’s another method to renegotiate the conditions of my present mortgage, help stop foreclosure on my house and to prevent default.
If it be feasible to get my present adjustable rate mortgage? If that is impossible can the next rate change be postponed to a future date to enable me to refinance. Any other options you can supply would be greatly valued.
I don’t need that to change and have had not a problem making my payments for more than three years. Another firm initially wrote my mortgage and purchased by Countrywide. It was the sole loan although the first mortgage conditions are horrible. I was promised that refinancing would not be any trouble but that turned out not to be accurate because of the slowdown of the housing industry.
The primary problem is that my property is currently worth about 5-10% less than what I paid for it which is keeping me from having the ability to refinance. I was studying online and came across the Fannie Mae Statement #06-18 (Oct. 4th 2006) regarding the servicing of Standard Mortgage Modifications.
I really believe this addresses the scenario I now find myself in along with a number of other homeowners. Attached are recent pay stubs showing my present income.
Thanks you for your time and thought.
Example Hardship Letter 3:
To make it easier for most I have included another mortgage modification hardship letter example as a word document. Just download it to your computer and edit as you see necessary.