One piece of the mortgage modification or refinance process that homeowners usually get wrong is the hardship letter. Every bank that is thinking about giving the borrowers an alternative to avoid the foreclosure procedures will request a detailed letter documenting what initially caused the decrease of monthly payments, as well as what steps have been taken to fix the problem.
Many homeowners, though, write very quick hardship letters that explain almost nothing about what transpired, what has been done to remedy the situation, and why the financial hardship was only temporary in nature. In reading dozens of such letters over the years, it seems that many homeowners do not understand what to include when writing the lender.
The most important part of the letter is the documentation of what happened to cause the hardship. This should be as specific as possible, because financial institutions will want to make sure that it was an actual hardship that caused the borrowers to become delinquent in payments. Something like a job loss or huge medical expense will be given more credit than a sick cat or broken TV that was repaired.
It is also vital that homeowners include dates and time frames during which portions of the hardship occurred. Banks do not want vague accounts of losing a job and then finding one. They want to know what month the problem happened, then what was done in the meantime while payments were being missed, then when exactly a new job was started.
Finally, homeowners should include a specific call to action that they want their bank to take. Whether it is changing the terms of a mortgage or accepting a short sale, unless the bank is aware of exactly what the borrowers request, they may not know what to do with the workout documents. Being clear about their intentions with the property is the best way for owners to communicate with banks.
The hardship letter is a necessary piece of the puzzle of paperwork that banks require before dealing with foreclosure victims. Debtors should use the opportunity to document what happened to cause them to become delinquent in as much detail as they can. This is their time to explain that they are not deadbeats and deserve another chance to hold onto their property.
Author Resource:-
Homeowners interested in loan modification, foreclosure loans, deed in lieu, and other options to stop foreclosure can find all the assistance they need by visiting Nick's ForeclosureFish website. Visit the site while you still have time to figure out a solution to save your home before the bank has it sold out from under you at a trustee's sale. Hundreds of pages of information, options, and general advice can be found at the website, which you can find here: http://www.foreclosurefish.com/
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