Are you struggling to make your monthly mortgage payments? So are thousands of homeowners who come to us for help at loanmoddepot.com. The country’s economy is on a downward spiral, but you don’t have to lose your home because of economic instability that is being faced by a majority of the population.
What is a loan modification hardship letter?
If you’re having a financial challenge that is preventing you from repaying your loan according to the initial agreement with your lender, you can apply for a loan modification.
The first requirement for a loan modification consideration is a hardship letter. The letter should detail the cause of your current financial instability, your future plans for improving your status and your interest in retaining the ownership of your premise.
The cause of your financial instability
The main job of a lender is to minimize loss by collecting back their money. There are lots of loan modification options that a lender can offer you, but for all of them, the reason for your financial struggle should be clearly stated. Have you gone through a divorce? Are there new medical bills? Have you or the main provider in the hoe lost their job?
Tell the lender when your financial woes began so that they are able to understand your deteriorating payment history. This will also help the bank see that your credit history was actually good before, which can work in your favor.
Any loan modification consultant will tell you that the lender is not as interested in your current financial struggles as much as they are about your plans for mitigation. For your loan modification application to be approved, you must be able to demonstrate to your lender your seriousness in keeping the agreement for the new payment structure. Are you looking for a new job? Are you willing to set a budget? A hardship letter that can clearly communicate this will increase your chance of getting a loan modification.