| If you are at risk of losing your home, a loan | | | | reduced income - with the last being the most |
| modification is your best option. In order to qualify you | | | | common in the past months. Present necessary data |
| have to convince your creditor that you are | | | | regarding your income and expenditures. Also indicate |
| experiencing temporary financial problems. You are | | | | any amount that you have to compensate for any |
| however willing to work out a solution to pay some | | | | default. |
| portion of your mortgage to avoid foreclosure instead | | | | More importantly, your letter should state any |
| of not paying at all. | | | | anticipated improvements in your monetary situation. |
| Writing a hardship letter is advisable. Here are some | | | | This piece of information is the most crucial in qualifying |
| guidelines to help you how to write one. | | | | for a loan modification. You want your creditor to |
| Your letter must be brief and concise. With everybody | | | | know that you are a responsible home owner and that |
| else applying for a modification, the lender doesn't have | | | | you can be relied upon to forward payments if you |
| the time to read a long-winding, emotional novel. Be | | | | are given a chance for a modified loan. |
| respectful of his time and limit your letter to one or two | | | | You must also attach copies of proof of income - |
| pages only. | | | | your last pay stubs, documents related to expenditure, |
| Do not fabricate details thinking it will increase your | | | | and other financial records. Also include all |
| chances for eligibility. It will not. And if found out, you will | | | | correspondence between you and your lender, bank |
| be automatically disqualified. | | | | statements for the past 3 to 6 months, and all |
| Explain your situation clearly in a professional tone. | | | | mortgage paper work. |
| Give factual information about your critical financial | | | | Lastly, make sure you provide correct identification |
| circumstances. It may be due to a death of a family | | | | (name, address, and account number) and times in |
| member, medical bills, business failure, job loss, or | | | | which you will be available for the lender. |