The only certainty in life is uncertainty. Even in the face of uncertainty, everyone wants to be certain that they'll have their slice of the American Pie, which usually equates to a mortgage. At the peak of the housing market bubble, people were simply being approved for more American pie than their stomach or wallet could afford. The end result has been a staggering number of foreclosures.
Appearing to be an inkling of hope, many lenders will grant loan modifications to borrowers who meet their criteria and can effectively produce a hardship letter. While there isn't a standard for writing a hardship letter for a loan modification, there are some practices that have proven to be more fruitful than others. The following top 5 hardship letter mistakes are examples of what you shouldn't do in your hardship letter for your loan modification.
1. No Novels!
It is very likely that the person reading your Wells Fargo or Bank of America hardship letter has several hundreds in addition to yours. One of the worst practices is to burden the reader with all of the details leading up to your financial hardships. Instead, you should keep your letter succinct and to the point. In return, your lender will appreciate your effectiveness in communicating your disposition.
2. No Gratitude
Far too often, when borrowers write a hardship letter for a loan modification, they fail to thank the lender. When you signed the promissory note to repay your mortgage, you made a legal agreement to repay the debt. Considering the lender isn't required to modify your loan, a "Thank You" goes a long way when you are asking for assistance.
3. Same Old, Same Old
"I got sick, I was out of work..." are very real reasons why people fall behind on their obligations. However, when you are writing your hardship letter for your loan modification, you should make sure to make your hardship letter unique. Simply put, explain your medical condition or the extenuating circumstances that led to your inability to repay your debt.
4. A Not-so-Fool-Proof Plan
Several people explain why they were delinquent in their hardship letter for a loan modification. However, just because you offer a stellar explanation doesn't mean that the bank will be willing to modify your loan. The key is to not only explain what happened, but you must also show your lender that those occurrences are in the past. In addition, you should explain the steps you have taken to prevent any future mishaps from occurring.
5. Signed, Sealed, Delivered....Right?
Simply put, if you fail to sign and date your hardship letter for loan modification, the lender will simply reject it. It's important to include your address underneath your name, especially if you're still living in the property. This little tad bit of information will communicate to the lender that the loan is for your primary residence and not for some rental or investment property.
Unless you are a professional or confident writer, producing a hardship letter for your loan modification can be stressful. On one hand, you want to explain your situation. In contrast, several examples of hardship letters for loan modifications may offer you contradicting information. Unfortunately, this is only the beginning. Instead of stressing over deadlines and documents that you are not familiar with, you should put your best foot forward by using the services of a top-rated foreclosure defense law firm.
Why a foreclosure defense law firm? The best foreclosure defense law firms specialize in foreclosure defense and also offer loan modification as an ancillary service. They have the advantage of an uncanny understanding of the process and offer you a comprehensive service that will alleviate you of your woes. The top foreclosure defense law firms don't just offer assistance and counsel, they actually handle the entire process so you can focus on getting your life back on track. What more could you ask for?
