You may be one of the millions of Americans who have been affected by the recession and having difficulties making their mortgage payments. There are some government sponsored programs that could help you stay in your home. A new, lower monthly payment could have the answer you are looking for. What does it take to apply and qualify for Obama's HAMP loan workout program? Here is the number one criteria for qualifying.
One of the most important parts of qualifying for a mortgage loan modification is providing that you have suffered an acceptable financial hardship. This is where writing a convincingly hardship letter becomes so important-you need to explain your circumstances to your bank so that they will be more inclined to sympathize with your situation. Here are some pointers that may help you to write your own effective hardship letter.
A mortgage loan modification is your second chance to get the lower monthly payment you need-but not everyone will qualify for these programs. The first step is to convince your lender that circumances beyond your control have caused the current payment to now be unaffordable. So, the first part of your letter needs to give a brief description of what has happened in your life to cause the financial difficulties. Perhaps you were laid off work or had your hours cut. Medical bills, death of a family member or divorce are some other reasons that your lender will consider. There are as many different situations as there are homeowners, so just take a paragraph to briefly describe what happened.
The second part of your mortgage loan modification hardship letter is very important-why? Because it tells your lender how you plan to get back on track and why you think you will be able to afford to pay and maintain the new modified payment. The last thing your bank wants to do is modify your loan, only to have you become delinquent again. You need to tell the bank how and why the modified payment will make the difference for your families budget and insure them that you will not default in the future.
Another good pointer for an effective mortgage loan modification hardship letter is to give the bank a few details about why you are so committed to keeping your home. For example, if your children are involved in school activities or sports, tell your bank about that. If you are active in your local church or community, express your desire to remain a productive member of the neighborhood and stress your commitment to the community. Remember, you are trying to gain the empathy of the person reading your letter and a few details will help make an important connection between the reader and your family.
These are just a few of the important elements that a compelling and effective hardship letter contains. Each homeowner faces a unique set of circumstances, but if you hope to be approved for a mortgage loan modification, you need to portray your families situation and motivation to stay in your home to your bank so that they will be more willing to help you with a loan workout. There are 3 critical elements to an effective hardship letter, make sure you include them all in yours.