Tips for Writing a Hardship Letter For a Mortgage Modification

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.

Wooden Letters: 5 Tips on Using Them As Decoration

Out of the various ornaments and decorations that you can grace your home with, wooden letters – be they letters carved individually from pieces of wood or wooden blocks with letters pained on them – bring a simple yet elegant look to rooms they’re placed in. But how do you display them properly?

Rooms
Wooden letters tend to be most suited to bedrooms, living rooms and hallways. If you choose letters to go in your home’s hallways then opt for ones that carry a message of greeting, such as “Welcome” or something generally pleasant such as “Home”. You could even try to conceal a message with the letters between the rooms, with different words appearing in each room, but contributing to one message, such as “Welcome home love”.

Colour
Of course there’s no point in going for just any set of wooden letters. The colour of them is very important. If you have a busy colour scheme in the room you plan to place them in, then you need to decide whether your letters will be equally as busy. An equally intricately decorated set of letters will look less out of place in a busy scheme than neutrally coloured ones.

Type-Face
There are styles of type-face (font) that are more suited to certain decoration schemes than others. Very “Roman-esque” lettering would be suited to a room that is drawing on classic and traditional style schemes. More cursive style letters would fit in with a scheme that is more homely and nostalgically decorated – so a cottage look.

Shelves
One of the most popular places to put wooden letters, shelves are good, but you need to think carefully about how you plan to put the letters there. Letters that need to be fixed to a surface, like a wall or the back of a shelving unit, should obviously be properly fixed to a surface even though they’ll be resting on a shelf. So put them at the back of the shelf. As to blocks, they look fine in front of items on shelves, just be careful when you take things down from the shelf they’re on.

Mantelpieces
In some ways, an ideal place to keep wooden letters, and in other ways not. If the fireplace underneath the mantelpiece is in use, then you risk damaging the letters as the heat from any fires (or gas fires) could warp the letters or lead to them splitting. So, if your fireplace is not in use for actual fires, then go and put some letters on there.

The Basics of Writing a Short Sale Hardship Letter

What in short sale and letter and why do I need to write one? Please mail your real estate agent has explained the process of short sale to you and has told you that you need to write a short sale hardship letter. If you are reading this is most likely because they did not thoroughly explained that to you. The hardship letter is the statement from you to your lender as to why you no longer can make your mortgage payment and why they should accept a short sale on your home.

What shouldn’t you do when writing a hardship letter? Your short sale hardship letter is not the place to complain about your lender! As you sit down to write your letter resist the urge to complain to your lender about how unfair they are and how bad your loan is. They simply do not care! You need to focus on staying factual and nonemotional as you write your hardship letter. Keep in mind that the person reading your hardship letter does not really care about your situation but has the power to approve or disapprove the sale of your home. Starting off by telling them how stupid they are, and how unfair the bank is been to them is not likely to help you.

The First Steps to Writing Your Hardship Letter. Before you start writing your hardship letter stop and make a list of all the changes to your finances since you bought your home. Have you lost or change job? Do you have new bills such as medical or education expenses, that have come up?

Go through your list and select three or four that have made the greatest impact on you. These will be the items that you list in your letter to the bank. One by one go through and write out exactly how each one has hurt you financially and contributed to your inability to pay your mortgage.

How Long Should My Short Sale Hardship Letter Be? The easy answer to how long should a short sale hardship letter be is no longer than one page. Be concise, hit all of your reasons for needing to do a short sale, but do not get long-winded in your explanations. Consider that the person reading it let already read hundreds before it and does not want to dig through three pages to find a reason why they should grant you a short sale.

Start Your Hardship Letter. At the top of the hardship letter put your bank’s name that you are requesting the short sale from, their address and their phone number and fax number. Skip a line and insert the date of your letter. Skip another line and put the header “Request for short sale – (Your Loan # and Property address).”

You will find that putting your loan number and address on all your paperwork when dealing with the bank will help in keeping them from ‘not getting’ any of your documents. Meaning of course that they got it but promptly lost it somewhere in their office.

Paragraph 1 – Your General Financial Situation

In the first paragraph of your hardship letter state the change took place why you can no longer afford your payments. Keep your explanation brief and simply let them know that some change happened between the time you bought the home and how it has affected your ability to pay your mortgage loan. Ex: “I lost my job and have had a serious reduction in income”

Paragraph 2-Your Local Real Estate Market

In the second paragraph of your letter will explain how your home’s value has gone down. Discussed changes to the local market, the number of homes for sale, how many bank owned in short sale properties are around your home and so on.

Your real estate agent should be able to provide some of this information for you. It is definitely a good idea to as accurately as possible document why their acceptance of short sale is financially beneficial to them.

Paragraphs 3 & 4 – Explain Your Situation in Detail

in your middle paragraphs explain in more detail the changes in your finances that have brought you to your current situation. Insert details such as how much her income has dropped how your bills have increased and so on. Again the whole point of this is to show the person evaluating your file how despite your best efforts you are no longer able to afford your home.

Paragraph 5 – Your Declaration

Very plainly in the last paragraph of your letter declare that despite your desire to keep paying your mortgage and to not sell your home that your current financial situation makes that impossible and that if the bank does not approve a short sale then they will be forced to take back your home via foreclosure. Hopefully you have done a good job in convincing them that it is now worth considerably less than what is owed and that is in their best interest to let your short sale so go through.

I Wish You the Best of Luck With the Sale of Your Home

I hope this explanation of how to write a short sale hardship letter will help you complete the short sale of your home. It is heart-wrenching for me to work with so many homeowners that are in situations like yours where they are being forced to sell homes they intended to live in for many years to come.