Table of Contents
How do I write a hardship letter for a mortgage modification?
How to Write an Effective Hardship Letter
- Part 1: Explain what happened and why you are applying.
- Part 2: Specifically illustrate the time and severity of the hardship.
- Part 3: Back up the reasons traditional remedies won’t work.
- Part 4: Detail why you are stable enough to succeed with a modification.
What is considered a hardship for a loan modification?
You have to be suffering a financial hardship. This may be a loss of a job or reduced income, a serious illness, costly medical bills, a balloon payment due on your mortgage, a divorce or excessive debt are all examples.
How do you write a hardship statement?
Tips for Writing a Hardship Letter
- Keep it original.
- Be honest.
- Keep it concise.
- Don’t cast blame or shirk responsibility.
- Don’t use jargon or fancy words.
- Keep your objectives in mind.
- Provide the creditor an action plan.
- Talk to a Financial Couch.
What happens if modification is denied?
Many lenders will approve a temporary modification as a trial period to see whether or not you’ll be able to make the modification payments on your loan. If you miss one of the trial modification payments, the loan modification will not be permanent and it will be back to the regular loan.
How do I fill out a hardship application?
If struggling to resolve outstanding debts, consider writing a hardship letter….Tips for Writing a Hardship Letter
- Keep it original.
- Be honest.
- Keep it concise.
- Don’t cast blame or shirk responsibility.
- Don’t use jargon or fancy words.
- Keep your objectives in mind.
- Provide the creditor an action plan.
- Talk to a Financial Couch.
How do you explain financial hardship?
Financial hardship typically refers to a situation in which a person cannot keep up with debt payments and bills or if the amount you need to pay each month is more than the amount you earn, due to a circumstance beyond your control.