If you are facing foreclosure and cannot get approved to refinance a loan modification may be your best bet to dodge foreclosure. A loan modification hardship letter is the first step to solving your financial difficulties, you tell the lender the problems you are having and anything else they need to know or ask. Lenders have declined many people a loan modification just because their hardship letter was poorly written.

The hardship letter that you provided should describe in detail your current financial situation and also explain why you are in need of a loan modification. You should also included that this would solve your financial difficulties and would be able to repay the loan if you had the help of their loan modification. You have to emphasize that this would solve your problem and that you are determined to keep your home and that your financial situation is number one on your priority list.

It is true that the lender does need to know your situation, however stick to the facts, don’t elaborate or answer questions you were not asked. Be quick and make your point. Being honest and sincere will go farther than a sob story or complaining will. Let them know that the loan modification will help you get back on track to repay the loan and that it is very important to you to not have to leave your home. You have to make the lender believe that you will absolutely not default on the loan again and that this loan modification is the answer to your problem.

Since the economy has been struggling so much recently, lenders are getting phone calls non stop everyday. Everyday the lenders listen to peoples sob stories don’t let your problem get overlooked. The hardship letter you give the lender should not be more than a few pages and really is preferred to be shorter. Have your financial plan come through in the letter and have a positive attitude. The lenders need to feel that you are responsible and dedicated to getting your finances in order and that this was just a bump in the road. They are able to give you the second chance you desperately need.

You will need two main support systems before approaching a lender. You must first find a financial adviser that is trustworthy. Make sure this person has a proven record of helping people modify a mortgage who are facing foreclosure. Once you find that right person they can help you state your case to the lender offering the loan modification. Secondly look for an example of a hardship letter online. You can use this example as a start of how to write your own letter that you will give the lender to get a loan modification. Be clear and honest and the loan modification can be your second chance.

-M Petrone

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