Should the Seller Write a Letter Requesting a Loan Modification?
This is usually called a hardship letter, and must be included with the application for a loan modification. In general, homeowners should describe what caused them to fall behind in their mortgage payments, whether it was a job loss, medical emergency, or other issues. Also, the borrowers should detail what they did to solve the problem, how they recovered from it, and what they are doing to make sure that they never fall behind again.
Homeowners should use the hardship letter as an opportunity to gain more understanding of their situation and make the best case they can to the bank. If the borrowers have fully recovered, they should state this, and if they have replaced some income but their situation has permanently changed, they should also disclose this to the bank. The more information the bank has that may not be explainable anywhere else but the hardship letter, the better. If you or someone you know needs to review your options to prevent foreclosure contact Tami Saner at (916) 417-6162.