| When you apply for a loan modification through the | | | | hardship, don't forget to be sure you establish your |
| Home Stimulus Plan, you will be required to write a | | | | ability to make the modified payment in the future. This |
| hardship letter detailing your financial problems. Financial | | | | is very important. They may very well feel sorry for |
| hardship is one of the main requirements for a loan | | | | you for your job loss, divorce, loss of a spouse, or |
| modification under this program. | | | | whatever caused your financial situation. However, |
| Financial hardship means something happened to you; | | | | they can't give you a loan modification if you can't |
| you were a victim of circumstances that made it | | | | make the new payments, either. |
| impossible for you to make your house payment. You | | | | You need to get your facts conveyed to the lender in |
| explain these events in a hardship letter. It is an integral | | | | your hardship letter, and of course you want to do it in |
| part of your application package. But, don't mistake this | | | | as positive a manner as you can. You also must |
| for a writing assignment that is going to be judged on | | | | remember that this is not a creative writing assignment. |
| self-expression and emotional appeal! Just the facts, | | | | You are not writing fiction, either! You must document |
| please. | | | | every statement you make regarding income and |
| This letter should be no longer than a page and a half | | | | expenses. So, there is no need to stretch the truth, |
| long. Your lender wants just the facts. | | | | because you will be found out. |
| They don't want to muddle through a lot of personal | | | | You can only apply once for a loan modification |
| feelings looking for the pertinent information they need | | | | through the Home Stimulus Plan, so you want to |
| regarding income and expenses. They are making a | | | | carefully follow the guidelines. Have everything |
| judgement on your risk as a borrower. | | | | prepared before you contact your lender. |
| As you are intently making a case for your financial | | | | |