Everyone wants a big slice of American Pie – namely, home ownership. But things happen that prevent us from a solid future in our home, or perhaps the banks approved you for more than you could afford, and now you’re struggling to keep up. When this happens, the bank comes knocking on the door.
However, before you give in and allow your home to be foreclosed, you do have options. One such option is asking the bank for a loan modification. In order to do this, you must pen a hardship letter to prove to the bank that certain circumstances have arisen in your life that was preventing you from paying the amount currently due on your mortgage. Here, we will provide you with the top mistakes made by people looking for a loan modification.
Hardship Letter Tips
Keep It Brief
The bank won’t be interested in ready the novel of your life. Leave out the filler details and stick to the bare bones, briefly explain the hardships that you’ve encountered and how long they expect to last.
Unique Circumstances
Don’t use the common excuses of “I got sick”, “I got laid off”, etc. While those are legitimate excuses, you want to make your letter unique. Explain the medical condition, don’t just say you’re ill. Or, explain why you got laid off: closure of the factory, major contract negotiations failed, and the like.
Have a Plan
Once you’ve explained your unique circumstances, you need to show the bank that these issues are in the past and that you’re ready, willing and able to make good going forward. Also, note any steps you’ve taken to prevent these misfortunes from happening again in the future.
For more information on hardship letters and other forms of foreclosure defense , contact us today.
