| Writing a loan modification hardship letter is an | | | | health problems. |
| important task that should not be taken lightly. Financial | | | | When possible, explain your plan for staying on tract |
| letters of hardship allow borrowers to provide | | | | with future home loan payments. If you have received |
| mortgage lenders with details of events that caused | | | | a raise, taken a second job or received inheritance |
| them to become delinquent on home loan payments | | | | money, include this information in the hardship letter. |
| and explain why they need to modify the terms of | | | | Borrowers must provide financial records and proof of |
| their home loan. | | | | income when applying for a loan modification. |
| Although there is no standard protocol for writing a | | | | Borrowers who provide false income statements |
| loan modification hardship letter, strategies can be | | | | could be charged with mortgage fraud. Therefore, it is |
| implemented to improve chances for a successful | | | | crucial to be honest when applying for a modified |
| outcome. Last year, I wrote a book about real estate | | | | home loan. |
| short sales and had the privilege of interviewing | | | | One loan modification option is Obama's Making Home |
| mortgage lenders, bank loss mitigators, and real estate | | | | Affordable program. Borrowers must submit modified |
| attorneys. Every professional stated mortgage service | | | | loan requests to their mortgage lender prior to the |
| providers prefer handwritten letters of hardship. | | | | December 31, 2012 deadline. Eligibility requirements and |
| With that being said, the debt hardship letter must be | | | | criteria are published at |
| easy to read. Borrowers with poor handwriting should | | | | If borrowers do not qualify for loan modification or |
| ask someone else to write out the letter. Otherwise, | | | | mortgage refinance through Making Home Affordable |
| use a typewriter or word processing program. | | | | programs, they may qualify for the foreclosure |
| Lender hardship letters should be short and to the | | | | alternatives program. This program allows borrowers |
| point, yet provide enough information to help bank loss | | | | to enter into a short sale or deed in lieu of foreclosure |
| mitigators understand the circumstances which led to | | | | agreement to obtain financial relief. |
| financial problems. Loss mitigators are responsible for | | | | It is important for borrowers to conduct research and |
| handling loan modifications, mortgage refinance, | | | | determine available home loan options. In addition to |
| foreclosure and short sale transactions and do not | | | | loan modifications, mortgage refinancing, and short |
| have time to read lengthy letters of hardship. | | | | selling, borrowers might qualify for a forbearance |
| When crafting the loan modification hardship letter it is | | | | agreement or deed in lieu of foreclosure. Taking time |
| important to stick to the facts. Start by creating an | | | | to gather the facts allows homeowners to make |
| outline of major events. These might include loss of | | | | informed decisions about one of their most valuable |
| employment, divorce, death of a spouse, or chronic | | | | assets. |