Whether you are looking for loan modification, or whether you are looking for home mortgage loan financing, if you have faced problems with your money situation, it may be difficult to get through the process. In order to get a home mortgage loan -- or to get modified terms on an existing home mortgage loan -- you may need to write a hardship letter.
Writing a hardship letter
The point of a hardship letter is to convince the mortgage lender that you can make payments. Calculated Risk makes this excellent point with regard to home mortgage loan modification:
Servicers do not modify loans because they feel sorry for you. They modify loans because you have convinced them that you will be able to make payments that way.
You need to be able to convince the mortgage lender -- through your harship letter -- that you will be able to make payments. This means that you need to be up front. In the case of mortgage loan term modification, you need to explain that you are committed to staying in your home, and what payment you need in order to meet that goal.
Getting home mortgage financing in the first place
If you have been, overall, a good customer, your mortgage lender is fairly likely to help you with loan term modification. The problem comes in if your credit is preventing you from getting first time financing for buying a home. When you write this hardship letter, you should make sure to focus on what you are doing now to rectify the past financial problems.
If the credit problem is truly the result of some sort of medical or natural catastrophe, you need to have some sort of documentation, and you need to explain -- as succinctly as possible -- what happened. You need to show that overall, you have been good about paying your obligations, and you may need to show extra proof that your currenct financial situation is likely to remain stable.
It can be difficult to write a hardship letter, but in many cases, it is necessary.
image credit: sxc.hu
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