home loan modification

For the home loan modification seekers a hardship letter is least of their worries. What they tend to focus more on is filling up the application form and the worksheets. While the application forms and worksheets are vital, importance of a hardship letter should never be underestimated. A sample loan modification hardship letter has been provided below.

A well written hardship letter not only coherently expresses your need but is also a documentation that stays with the application file to tell your story when you are not there.While you do not want to make your hardship letter verbose and lengthy at the same time be sure not to leave out any necessary details that you must point out in the letter. For making the letter as compelling as possible you can even consider professional help if you need to but keep in mind that you are the best judge of the situation you are in.

There is no recommended format, but a well written hardship letter should contain the following:

Loan Number: This is your ID and can be noted down from the mortgage statement.

Name: Should have the name as mentioned in the loan form and property address.

Phone Number & Contact address: The number should be one where you are most of the times available. A good idea is to also mention the second best number that can be contacted if you are not available on the primary phone number. Give your contact address which is most easily verifiable by bank personnel if need be.

Subject: A good hardship letter would contain the valid reasons for seeking the home loan modification by the home owner could be disability to work, hospitalization or loss of job even could be adjustment of mortgage loan.

A Sample hardship letter goes like this:

Name: (As mentioned in the loan papers)

Primary Address and contact number: (As mentioned in the bank records)

Lender Name: (Bank you are sending plea to)

Loan No.: (As mentioned in the bank papers)

To Whom It May Concern:

We are a home loan borrower from you esteemed bank. This hardship letter seeks to address the reasons behind our delinquency in our mortgage payment. We purchased our dream home in summer of 2007 but fell behind in our mortgage payment due to unforeseen circumstances. State the reason for delinquency (loss of job, medical emergency etc) and how this has put you and your family in the groove of dire financial difficulties. Be specific with dates about when did the difficulty start?

Mention the nature of hardship whether it is temporary or permanent. If it is temporary (for example you had a job loss) how long would that last? If it is permanent hardship, explain to the bank that what that means.

In the end talk about the solution that you propose, (for example you lost a job and now you have got a job but with a lower salary, state how much is your current salary and how the modification will bring you back on the track. Be specific with the type of modification that you desire (Whether it is interest rate modification, fixed rate, short sale, reduction in the principal amount or payment deferment e.t.c)

We thoroughly appreciate your valuable time and attention paid to our concern and look forward to working with your.

Sincerely and Respectfully,

Borrower’s (Name and Signature)

Date

Co-Borrower’s (Name and Signature)

Date

If you follow this sample loan modification hardship letter it will greatly improve your chances of success in applying for a modification.