Tag Archives: loan modification
Hardship Letter for Loan Modification – Tips On How to Write One Effectively
Most borrowers do not know that a hardship letter is required to process an application for loan modification. Even those who do, often do not understand what the bank needs to see in this letter.
The time and effort it takes to do a proper hardship letter will repay you with a successful loan modification that lets you keep your home. Even if you qualify, the hardship letter is necessary to prove that you do. It is like pleading your case in court. This document is essential to convince your bank that you are indeed suffering financial hardship. Writing this letter with the proper attention to detail proves to the bank that you deserve their serious consideration.
While the proper way to write a hardship letter varies, some elements always apply:
1. Before you even start, gather your financial records for the previous twelve months, just as you would in order to file your annual income tax statement. Put the most important records on top, within easy reach, so that you can refer to them as you write. The hardship letter must be detailed, in order for the bank not to pass over your loan modification request.
2. Make a separate list of your financial difficulties, going back for at least twelve months. Get the right dates written down, if you feel this information will be useful for your bank. Be as clear and efficient as you can, to prevent confusion and save your lender’s time.
3. Now calculate just how much you can pay on your monthly mortgage. List your complete household income, then deduct all expenses. If you are not sure about a particular amount, or if it varies widely, then do an average or at least make a guess. This shows your lender that you are a borrower who is conscious of money. In this way, they see that you are worth their effort.
With this, you are off to an excellent start. Next, keep in mind these points as you draft your hardship letter for loan modification:
– Be neither too detailed nor too vague. Yes, an emotional appeal may help, but your bank needs convincing evidence in order to support its granting of your request. Present the facts and show how they have impacted your budget.
– Even if you plan to sell your house, do not disclose this to your lender. The bank must believe that you intend to stick with them over the long haul, in order to go to the trouble of modifying your loan.
– Avoid too many specifics regarding your private life. The bank is not interested in your terrible divorce or your complicated student woes. Only give them the information they need to make a determination, by sticking to the financial facts.
– Be respectful and well-mannered in your hardship letter. Any frustration you may have experienced with your lending institution does not belong in this letter. The point is to get the help you need, as soon as possible.
– Provide any supporting documentation, including recent bank statements and all other official information that shows recent financial hardship.
With these points in mind, you are on the road to negotiating a successful loan modification agreement. Nowadays this help is being extended to more homeowners than ever, once they put in the time to prepare the appropriate information for their lender, and effectively state their case.
Whispered Loan Modification Secrets
Well the dust has settled Creditors are calling and you’re in need of a Home Loan Modification.
But you may ask:
How can I pay $3000-5000 for a Modification and still maintain my existing day to day obligation’s?
The Answer lies within this article. Feel relieved that you have found the right solution.
Many people asked me if there is a way to modify their loan without spending your life’s savings or filing Bankruptcy, I always reply them that you can do it yourself by using a web based DIY loan modification software.
There are chances that you may have been failed to tackle the very long loan then you may seek the help of the professional lawyer. The people with very short term small home loan hire the loan modification specialists and pay them thousands of dollars. The most shocking thing is that they are not getting any results. Now if you do it yourself modify your loan with the help of a loan modification software you will not only get your loan modify but also spend very few dollars.
If you need to modify your loan due to Hardship, Value Decline or Unemployment then you should consider a Web Based loan modification software to modify your loan. There is a good logic behind the do it your self-loan modification as you know best your needs and loan requirements. No other loan mod specialist can understand you needs and work harder than you.
So as per my recommendations a Web based loan modification Software is the ultimate choice for
You if are a home owner. As it literally allows you to control the whole process of your most protected investment Your Home !
You do not need to hire someone to submit your loan documents as by utilizing the Online Web Based Modification Software it will automatically pre- qualify you all Government Modification Assistance and Moreover you will be given all of the Analysis’s and hardship letters that are needed to show your lender that your facing Hardship and what their potential loss may be in the event of foreclosure.
Most Good home loan modification software allows you get the advantage of recent government programs provided for the troubled home owner to adjust their loan. As the program Home Affordable Mortgage was just launched to provide the help to all the homeowners who are facing difficulty paying their loans. With the help of Web based loan Modification you can get the full advantage of these programs and modify your loan without paying thousands of dollars.
If you have no prior knowledge about the loan modification process and afraid to do this by yourself then do not hesitate getting started with a Web Based Modification Software as it will literally guide you thru the whole process and pre customize all of your documents on your specified lenders form.
All you will have to do is Input, Print, Sign and Fax your Documents. .As I mentioned earlier anyone can complete this process. Don’t put off your most valuable investment Modify & Save !