Use A Loan Modification Hardship Letter Template Successfully
Writing an effective hardship letter is critical to the success of modifying a home loan. You must be able to communicate in a persuasive manner just how dire your financial situation has become before a lender will go through all the work necessary to keep you out of foreclosure.
To describe in detail just how serious a financial predicament the borrower finds him or herself, a hardship letter template can be used when confronting: forbearance agreements, loan workout agreements, immediate foreclosures and other loan modifications.
The most effective hardship letter is a very personal document. Your goal is to attempt to convince your lender, another human being, that they should act to help you financially because you are facing eminent disaster as a result of events that are usually beyond your personal control.
Commonly accepted reasons for asking for a loan modification include a long medical illness, unexpected job loss, family tragedy like a death, natural disasters, etc. If your letter affects the lender on an emotional level, he or she will likely be moved to act in a manner to help you out.
In your loan modification hardship letter template you should include how you got into your current state of financial distress and describe all the mitigating factors that you have tried to get out of your present state. One example could be using up your retirement funds to bail you out. Another example more information could be that you have borrowed money from a family member.
You must also make it clear in your letter that you have run out of options and the lender is your last resort for any means of forestalling foreclosure. Describe the immediacy of your need in detail so the lender knows that if he or she does not act by a date certain, you will default on your loan.
Your writing should reflect the emotional suffering that you are experiencing with the one piece treasure cruise hack cheats uncertainty of your financial future. As an otherwise responsible person who has found him or her in this financial quandary, you must convey in extreme detail the stress that possible foreclosure is having on your life. Often this gangstar vegas cheats stress takes the form of sleep disturbances, anxiety, depression and other symptoms.
Finally, your hardship letter template should contain the benefit that will accrue both you and the lender if you are able to modify your loan. Both the lender and the borrower suffer in any type default, which leads to foreclosure. Include in the letter what measures you have taken to make sure that any loan modification on the lender’s part will enable you to continue making the payments of the modified loan.