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Loan
Modification Hardship Letter
The
main
purpose
of
a loan modification hardship letter is to convince
your lender that you will be able to pay your monthly mortgage payment
on time in the future if
they
modify
your
loan.
The
first
paragraph should focus on the positive;
convincing the lender that you can make the modified monthly payment.
Basically,
your
lender
has
to make a calculated decision based on your
current financial and employment status to determine if you will be a
good candidate for a loan modification.While
the
“Hardships”
that may have contributed to your unique scenario
are important to include in this letter, all you're doing is briefly
explaining the financial documents provided anyway.
You're humanizing the mortgage. You're forcing the underwriter to
identify with your plight.
But ultimately, the underwriter/reader is
concerned with converting your non-performing, imminent default to a
performing asset. I have seen many suggested
hardship letter templates listed on the web.
I
truly
believe
that
no
template
is a "one size fits all" solution. That's why I resist
composing letters for my clients. What
happens when your underwriter reads the same letter twice (and yours is
the second one)? I believe that personalizing the hardship is much more
efficient and beneficial to your application. I will personally assist
you in composing the letter, without putting words in your mouth.
One final caveat. Make no mention of any reduction in property value.
The underwriter doesn't care. It'll just annoy them. Yes, you paid for
a mutually accepted appraisal. Yes, they accepted the value. No, they
don't have to accept responsibility for the recession economy, other
than the modification. (On the other hand, they didn't look at your
credit, either.)
Foreclosure?
Hell, I'm gonna shoot something!
Foreclosure Timer
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