How To Write A Successful Loan Modification Hardship Letter

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A loan modification can be a very big help if you are struggling to meet your monthly mortgage payments.  A modified loan may lower the rate of interest you pay, extend the length of the loan, or may even provide some principal forgiveness.  One of the keys to obtaining a loan modification on your mortgage is writing a persuasive loan modification hardship letter.   The following tips will help you to write a persuasive hardship letter that helps get your loan modification approved.

First here are some overall points to keep in mind.  Your loan modification hardship letter should be concise, direct and honest.  Your letter should be no more than one to two pages long.  The lender needs to understand why you haven't been able to meet your mortgage payments, see that you are making efforts to work through your financial difficulties, and be confident that you will be able to meet your new monthly payments if a loan modification is granted.

First you must clearly explain your financial hardship and demonstrate why you have fallen behind on your payments.  You may have lost your job or taken a pay cut, there may be illness or death in your family, you may be facing divorce or some other life changing circumstance, or your payments may have increased due to an adjustable rate interest change.  You need to be honest and direct when explaining your financial difficulties.

You should also explain in your loan modication hardship letter any efforts you have made to try to meet your financial obligations.  Maybe you have taken a second job or made an effort to cut back on your monthly expenses.  Detail these attempts as well.  Demonstrate to your mortgage lender that although you may have fallen on financial hard times, that you are responsible and attempting to meet your monthly obligations.

Finally conclude your loan modification hardship letter with an explanation to the lender of how a loan modification would really help your financial situation.  Show how you can get back on track and meet the new monthly payments that a loan modification would provide.

We all face financial difficulties at one point or another in our lives.  A loan modication is designed to make your monthly loan payments affordable so that you can stay in your home.  Remember, a foreclosure is very costly for your lender so present a convincing case in your loan modification hardship letter.  If you can do that you stand an excellent chance at qualifying for a loan modification.

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