| If you are one the several million home loan borrower | | | | convince the lender of your worthiness and |
| facing hard times in paying off your mortgage and | | | | seriousness about retaining your home. Hardship letter |
| even remotely considering the option of loan | | | | must also express your earnest intentions of paying |
| modification then by now you must be knowing that | | | | back the loan in full and that banks would not loose |
| application for modification of loan is one of the most | | | | money if they enter into thr modification agreement |
| important factor that can swing the odds of getting | | | | with you. |
| a modification in your favor. | | | | Proof of hardship: All the lending institutions require a |
| The key to getting your application for modification | | | | proof of hardship such as the monthly income |
| of loan approved is doing it right the first time. There | | | | statement like pay stubs and tax returns, expenses |
| are five things that can do to ensure getting your | | | | statements such as utility, grocery and rent bills. If |
| application for loan modification through: | | | | the reason for your hardship is a job loss or reduced |
| Information about bank guidelines: Even before you | | | | working hours then a letter from employer can make |
| start thinking about loan modification as a serious | | | | your story more credible. Be very honest in backing |
| option, pick up the phone and contact your bank | | | | up your claim for loan modification, any deliberate or |
| personnel to inquire about the bank guidelines and | | | | ignorant mistake can jeopardize the chances of |
| eligibility criterion's for the modification. Do not go by | | | | approval of your application for loan modification. The |
| 'One size fits all' rule as each and every lending | | | | banks personnel are very smart they deal with loan |
| institutions plays the game of loan modification as per | | | | modification cases day in and day out so do not try |
| their specific rules. A good knowledge of what bank | | | | to outsmart them. |
| is looking for can get you ahead in the queue of loan | | | | Fill up the paperwork: Do not mistake the paperwork |
| modification applicants. At this stage beware of | | | | as just another formality. Fill up the paperwork as |
| divulging any specific financial information to the bank | | | | diligently as possible. Double check it for any |
| personnel as once an information (right or wrong) | | | | omissions or mistake. Make a check list of all the |
| reaches the bank it is difficult to change it. | | | | documents required to be appended with the |
| Hardship letter: Hardship letter is one the most | | | | application and ensure everything is sent in one |
| important components of the whole loan modification | | | | package for bank's review. |
| application package. The hardship letter has to | | | | Little diligence and organized approach on your part |
| summarize the nature and causes of the financial | | | | can get you out of the quagmire of foreclosure and |
| hardship and how do you propose to combat the | | | | debt burden. |
| situation. The purpose of the hardship letter is to | | | | |