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Loan Modification Sample Letters

Faced with debts that cannot be paid and loans that are difficult to pay off, a person's true colors are shown. You might be in the worse possible circumstances but you can't let this break you, face the situation head on. Approach your lender and let him know the difficulty you are having. On our site you will find many examples of loan modification letters that will help you write your own to explain your circumstances. This will motivate your lender to work with you.

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It is very difficult if write a hardship letter, since it makes you sound like your situation is horrible. When you put everything in on paper, you are writing down everything that led up to where you are today and requesting help to pay your debts. We will help you do this. Even though it would be wonderful if no one ever had to write this letter, if no one was ever in this situation, when it happens, we will be here for you.

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Be honest, concise and personable in writing your letter. Don't be emotional. Just explain what happened to cause you to have trouble paying your bills since you initially agreed to the loan. For example, maybe your business collapsed and you no longer have an income or a family member became very ill and you had to spend a lot of money on healthcare treatment.

The point of the letter is to get your lender to be empathic to your situation; understand what brought you to this point, and agree to help you find a way out. This might mean finding a way to pay up to what you owe or working out a different way to pay. Take advantage of the letters posted on our site or others that you can find on the internet, or contact us and we will be happy to help you.

Using examples of Loan Modification Financial Hardship Letters, you will be ready to face your unfortunate circumstances with the right information. Learning to write a hardship letter is very important as it will help your lender understand your situation and decide to help you modify your loan in the best possible way for you.

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Article Source: ArticlesBase.com - Cover Letters Samples Free

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Loan Modification Sample Hardship Letters

A foreclosure hardship letter is used when homeowners are facing foreclosure. It is an integral part of any loan modification or short sale package. Loan modifications are offered to homeowners who want to save their home from foreclosure and have the financial means to become current on delinquent payments. Short sales are offered to homeowners who are unable to become current on their mortgage note. Lenders who accept short sale offers agree to accept less than the amount owed.

Most people find the foreclosure hardship letter the most difficult aspect of loan modification or short sale packages. It can be quite challenging to express the circumstances which caused you to fall behind on your mortgage payments.

Foreclosures are handled by the Loss Mitigation Department of your lender. Employees of this department are known as Loss Mitigators. When you are facing foreclosure, the bank will assign a Loss Mitigator to oversee your account. This individual can make or break your deal, so treat them with respect and provide them with the information they are seeking.

Your hardship letter will be read by your assigned Loss Mitigator. Keep in mind these individuals receive dozens of hardship letters every day. It's important to keep your letter short and to the point, while including pertinent facts.

The foreclosure hardship letter can either be handwritten or typed. If your handwriting is difficult to read, it's best to type the letter. The hardship letter is crucial to a successful transaction; therefore, it is imperative the Loss Mitigator can easily read it.

A business format should be used when composing your foreclosure hardship letter. Your name, address, city, zip and phone number should be placed at the top of the paper. The Loss Mitigator's name, lending institution and address is placed under your contact information. The next line should include the current date, then your loan number placed underneath the date. The body of the letter should be between four to six paragraphs. Close the letter with by signing and printing your name.

Below is an example of the foreclosure hardship letter format:

Joe and Jane Doe
123 Anyplace Avenue
Anytown, State 12345

Sam Jones
USA Lender
123 Anywhere Street
Anytown, State 12345

Current Date

RE: Your Loan Number (include either Loan Modification or Short Sale)

Dear Mr. Jones,

We are contacting you today to explain the circumstances which have caused us to become delinquent on our mortgage payments. Although we have done everything possible to improve our financial situation, we are still short on the money owed to you. We would greatly appreciate the opportunity to obtain a loan modification (or short sale).

The main reason we have become delinquent in my mortgage payments is (explain the reason here). Since we do not have enough income to pay our regular monthly mortgage payment, we are falling further behind and are concerned we will not be able to pay what is owed. We truly want to pay what is owed, but at this time do not know how to accomplish this. Therefore, we are turning to you for assistance.

We are asking for consideration to temporarily reduce or suspend our mortgage payments for a few months (or allow us to sell our home via a short sale). Doing so, would help us get back on track. Our home means a great deal to us and we desire to work with you to keep it out of foreclosure. Please advise us of all options available to stop foreclosure (or initiate a short sale) at your earliest convenience. We are anxious to reach an agreement and appreciate your prompt response.

Respectfully yours,

Print name of Borrower(s)
Signature of Borrower(s)
Loan #
Address
Phone
email address (if applicable)

Send the foreclosure hardship letter via certified mail with a return receipt requested. This will ensure you have proof you sent the letter. The return receipt must be signed by someone at the lending institution and the signature card will be returned to you in the mail.

About the Author:

Simon Volkov is a private Real Estate Note Investor who provides solutions to individuals facing foreclosure, short sales and other hardships. If you need to sell your house fast, present a
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hardship letter or looking for alternatives to help you avoid foreclosure visit
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Article Source: ArticlesBase.com - Foreclosure Hardship Letter Sample For Loss Mitigation

How much does a Loan Modification Cost?

Loss Mitigation Letters

Question: What should I write to loss mitigation department?

I'm going to submit a written offer for a property to the loss mitigation dept., in my letter I would like to explain that I'm submitting the offer for that amount because of current market conditions. What should I write?

Answer: Although you would think it should matter, the bank will likely not care. They have already done a substantial amount of work (or will do once they receive your offer) to verify the most likely $ the house should sell for in a 90 day timeline.

What the bank will do is pull comparable homes that are within 1 mile if in a urban location or 5 miles if rural that have sold in last 6 months and see what they sold for. They will make a list of repairs and have estimates for them. Based on the condition of the home they will have a figure in mind that should be acceptable. This is called a Brokers Price Opinion.

If you want to do this work for the bank that's fine but they will verify independantly. In addition, if the bank has not completed this work understand that you may be waiting a very long time before you hear back from them about accepting your offer. Buying homes in foreclosure is a time consuming process.

Preforeclosure Tip of the Week #5:Persistence pays off!