Know All About a Loan Modification Hardship Letter

It is a very difficult period for you; the economy is  down, companies are laying off workers, businesses are collapsing, consumer spending is falling and you are in a health crisis. All these have added up, putting you under a financial crisis that is ruining all your lifetime investments. You are running out of options, hence there is the need to utilize all instruments that can help in a loan modification mitigation. One of the instruments that can change your financial situation is the loan modification hardship letter.

What is a loan modification letter?

Everybody who falls a victim of the financial crisis may also be in bad debts. A loan modification hardship letter is written to your creditors, requesting for a reconsideration of the terms of payment. It’s an intention to reduce your payment burden and get lesser debt obligations. By reducing your debt obligations preferably, you will be paying lesser than what you were paying before. This will go a long way in enabling you to cope with the financial crisis. The letter is usually an instrument intended to reduce the effect of your financial situation.

What should it contain?

The most important thing about the letter is its purpose for loan modification services; i.e, persuading your creditors to go slow on you. It is not always a straight forward success but is a bet worth trying. Therefore, to succeed, you must apply due diligence and tell the creditor(s) what they should know in a persuasive way. The most important fact that the letter should contain is the direct and truthful information about your current situation that is your income and financial obligations. It is advisable to avoid personal reasons behind it, like alcoholism because that information might work against you in many cases.