When a homeowner applies for a mortgage modification, one of the most important items in the process is the hardship letter that explains your financial situation and why you are making the request. One of the best things a homeowner looking for home loan modification can do is write a good, effective and proper hardship letter. Here is some advice that can help any homeowner write that letter, and get a modified loan that will help them get into a better financial situation, save their home from being lost, or both.

The first thing a homeowner should do is contact their bank or mortgage lenders loss mitigation department. This is the department that reviews home loan modification applications and where you will find a person to talk to about your situation. When you contact the department and get in touch with an actual person, make sure to get their name, their phone extension, and the address. This information will be used when writing your hardship letter.

Next, homeowners should address the letter with the information they obtained. They should also write down the date. Make sure everything is spelled correctly and the address is right. For a subject line, homeowners should include their home loan number.

In the body of the hardship letter, homeowners should begin to explain their financial problems that are pushing them to get a loan modification. These can include a death of the primary income earner of the household, sickness, job loss or a reduced income, an arm loan that had raised in price so much that it is no longer affordable, or many other things.

A quick example of a typical hardship letter would look similar to this:
“This letter is being written due to me being laid off from my full time job on September of 2011. Since that time I have tried many avenues to generate revenue and find another job yet have not been able to. This is the reason I have missed a mortgage payment and have been late on a few other ones. The most important thing to me is not losing my home. We have tried every option available to us to save money and generate more yet are not able to make ends meet. We would kindly request that you help us with a mortgage modification that would allow us to make payments, and keep our home.”

The next part of the letter should come up with possible answers. Mortgage modification approval is not easy to get, and the homeowner who helps come up with a solution that enables the lender to continue to get paid is much more likely to be considered. While the bank or lender will help, they are still ultimately interested in getting paid. If you come up with a solution to your financial issues that allow them to still make a nice profit, yet lower your monthly costs, everyone will win. Just be sure that the solution you suggest will put you back into a financial situation where you will be able to make the mortgage payment every single month, on time and in full.

The last part of the mortgage modification hardship letter should include the steps you have taken to attempt to fix your financial situation since your hardship occurred. Include a brief description of your job search, and steps you have taken to save money. If you tried to get mortgage refinancing but got denied, let them know that as well. Include anything relevant regarding things you have done to improve your situation. When your done, be sure to sign and date the letter. Include all contact information such as phone numbers and email addresses.

Many homeowners are applying for a mortgage modification right now, and not many have a properly written letter of financial hardship. Writing a good letter will help a homeowner get much further in the process much quicker and will help them get approved for loan modification and improve their overall finances.

-M Petrone
http://www.RefinancingCondo.com

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