| The hardship letter is used to gain the sympathy and | | | | Explain what you have done deal with this situation |
| cooperation of your lender when applying for a | | | | Detail your plan for the future, how will you get things |
| mortgage modification loan. | | | | on the right road again |
| You will need to explain to the lender how and why | | | | Be sure to tell the lender that you want to save your |
| you are currently experiencing a financial hardship. You | | | | home and will do what it takes to make that happen |
| want your letter to illustrate not only how it happened | | | | You are not alone in your desire for a home loan |
| but what steps you have taken to correct the | | | | modification. If you do your homework and |
| problems. Your lender will want to know if you will be | | | | successfully qualify the rewards could include lowering |
| able to make the payments on a modified loan. You | | | | your interest rate, longer term loans, and lowering your |
| will need to show specifically how you will do this, | | | | monthly mortgage payment. The biggest reward of all, |
| perhaps you made a new budget and cut dining out, or | | | | saving your home! |
| weekly movie night. Be specific! | | | | Writing a spectacular hardship letter is only one step in |
| Knowing what qualifies as a financial hardship is your | | | | the loan modification process. You will need to fill out |
| first step to applying for a home loan modification. | | | | an application, provide all of your financial information |
| 1. Job loss or salary reduction | | | | including income documentation. Do not contact your |
| 2. Recent death of the homeowner, spouse or close | | | | lender until you have done the research and know |
| family member | | | | exactly what is needed to apply and qualify for a |
| 3. Serious medical expenses | | | | home loan modification. Acting impulsively could cost |
| 4. Divorce | | | | you your home! |
| 5. Adjustable rate mortgage - sudden large increase | | | | This is very confusing and overwhelming to most that |
| Now the question becomes, how do you make your | | | | are facing a financial hardship and the possibility of |
| hardship letter stand out in the crowd? Obviously | | | | losing their homes. You are not alone! But, there is help |
| lenders are being flooded with applications since the | | | | available to walk you through the process. |
| announcement of Obama's home stimulus plan. You | | | | Don't hesitate if you are already delinquent on your |
| need to explain your individual situation succinctly in | | | | mortgage time is of the essence. Waiting even |
| order to gain the lender's empathy and cooperation. | | | | another day could mean losing your home. You don't |
| Below are some suggestions on how to write a | | | | have to do it all by yourself, you don't even have to |
| successful hardship letter: | | | | fully understand all of the steps. But you do need to |
| Keep it brief. Your letter should not exceed 1 to 2 | | | | act now if you want to save your home and get back |
| pages | | | | on the road to security. |
| Describe your situation, what caused the hardship | | | | |