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You are applying for a loan modification or workout with your mortgage company and you need to write a letter on what has caused your “hardship” for your package.  What is making it to hard to keep up with the payments or bring them current.  Where do you start?  Here are some ideas for your letter to help make it successful.

Keep it short, 1 page is best, never over 2.  No need to write  a book, your lender is swamped with people just like you and the quicker they can understand you situation the quicker thy can act on your request.

At the top of the “hardship” letter put your name, co-borrowers name, address, lender name and loan number.  Make sure if you have a co-borrower that both of you sign and date the letter.

Start by cutting and pasting the next couple of lines in to your word processor and use it as a starting point on what to include:
* First, describe the hardship and the circumstances that caused it.  Couple of sentences
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home

What are some examples of hardship?

* Payment Shock, your rate adjusted and the payment now is much more than before
* Long Illness – Months not weeks
* Loss of Job – Again months not weeks
* Reduced Income – Were you able to keep a job rather than being laid off, but it is at a much lower income?
* Failed Business
* Job Relocation
* Death of Spouse or Co-Borrower
* Incarceration
* Divorce, or permanent separation where there is a written agreement
* Military Duty – They can’t foreclose if you are on active duty, but you still need to work out the payments
* Medical Bills – Your LASIK doesn’t count, but a large bills not covered by insurance
* Damage to Property (natural disaster or unnatural) – Was it destroyed by a hurricane and your insurance isn’t paying on the claim?

Check out some of these other articles on GetMeApprovedToday: Short Sale – 5 Frequently Asked Questions, and Short Sale Games.