| You have decided to save your home. You have | | | | try and overcome this hardship? Basically, the |
| begun to take the steps to qualify for a Home | | | | lender needs to be sure that you have tried |
| Loan Modification and are ready to begin your | | | | everything and the home loan modification is your |
| hardship letter. The first thing you need to know | | | | last hope for saving your home. |
| is that this letter is your chance to let your lender | | | | 3. Now it's time to convince the lender that you |
| know what happened, why you are in or about to | | | | are serious about staying in your home. Explain |
| be in this financial crisis. This is your opportunity to | | | | your community involvement, maybe explain that |
| tell the lender your specifics and gain the lenders | | | | your children have been in the same school |
| empathy and cooperation. This doesn't have to be | | | | district since elementary school and want to |
| as intimidating or overwhelming as it may first | | | | graduate there. The point here is to show the |
| appear. We will break it down and show you how | | | | lender that you WILL pay the new modified loan |
| to make your letter get you on your way to a | | | | payments on time. You have shown him that you |
| home modification loan! | | | | changed your budget to accommodate the new |
| A hardship letter needs to convey 3 important, | | | | budget, now you have to show your dedication to |
| but basic details. Your lender needs to see all 3 to | | | | being on time and keeping your home. |
| even consider you eligible for a home loan | | | | Your hardship letter should only be 1 to 1 ½ |
| modification. We will list all 3 and explain how you | | | | pages long, keep in mind that the banks are being |
| can use these ideas to meet the criteria. | | | | swamped with homeowners wanting to qualify |
| 1. This is your chance to fully explain your specific | | | | for a mortgage loan modification! You want to |
| financial situation. You will want to explain why | | | | grab his attention quickly and precisely, gain his |
| your financial situation has changed. Have you lost | | | | sympathy and his eagerness to help you by |
| your job, or perhaps had a major medical | | | | writing a compelling, well written, sincere letter. |
| expense? Something that was beyond your | | | | You don't need to write a novel in order to |
| control, but caused your current hardship. Make | | | | accomplish this goal. Use an outline, cover the 3 |
| sure to give dates of these events and also pay | | | | basic elements listed above and you will be well on |
| close attention to specifying how the date you | | | | your way to a new home loan modification. |
| lost your job (for example) ties in with the first | | | | You can use the same hardship letter for a |
| time you were late on your mortgage payment. | | | | second mortgage as well. Just pay attention to |
| 2. Once you have stated what happened to cause | | | | detail and make sure you adjust the dates and |
| your situation, you then need to explain what you | | | | amounts listed on the letter. As the Treasury is |
| have done to survive it all. Have you changed | | | | paying lenders for second mortgages that are |
| your monthly budget by cutting out extras? Have | | | | forgiven, the lenders are very motivated to assist |
| you completed drained your savings account? | | | | you! |
| Have you done everything within your power to | | | | |