| Writing an effective loan modification letter could be | | | | coming off as whiny or unstable. It is your |
| the difference between being approved for the loan | | | | opportunity to show the bank who you are and how |
| modification that will keep you in your home, and the | | | | you plan to get on track. It sets you apart from all |
| foreclosure that could be the beginning of disaster | | | | of the other people going through this process. If |
| for you and your family. So how is this done? What | | | | you are not a good writer it is in your best interest |
| exactly should go into the letter and how does one | | | | to get someone to help you with this. |
| go about writing a compelling loan modification letter. | | | | Many of the hardships that are acceptable to your |
| Your first order of business is to lay out, in a factual | | | | banker include divorce, loss of job or reduction in |
| way how you came to be in the financial situation | | | | pay, military deployment, death of a spouse of |
| you find yourself in. What factors were out of your | | | | financial provider, or increase in payment due to a |
| control, and what mistakes did you make. This needs | | | | variable interest increase. While there could be many |
| to be an honest assessment of what went wrong in | | | | other things that play into your hardship, these are all |
| your life. When the process begins, your financial | | | | things that are beyond the homeowner's control. A |
| information will be scrutinized so this is not the time | | | | multi thousand dollar spending spree and the resulting |
| to try to hide anything. Be truthful and make no | | | | credit card debt are not considered a hardship. |
| excuses. | | | | A good plan for recovery would include a budget |
| Next, you will have to provide proof of you current | | | | proposal, a breakdown of you expenses and your |
| income, details about your job and job history, and | | | | plan for allocation of those funds. It can also include |
| how you plan on paying your mortgage after the | | | | actions you have not yet taken such a opportunities |
| loan modification. It is easy to get caught up in the | | | | for future employment, and your willingness to |
| details of your hardship, but the bank wants to know | | | | sacrifice unnecessary expenses. If you bank is going |
| how you are going to fix it. Providing a clear and | | | | to extend you modifications on the loan you agreed |
| concise plan of action that lays out step by step how | | | | to pay, they want to see that you are willing to |
| you plan to get back on your feet is just as | | | | extend as well. |
| important to the bank as how you got there in the | | | | There are templates and examples of what a good |
| first place. Perhaps more! | | | | letter looks like. Using these examples is a good place |
| Your letter should convey your emotions and be | | | | to start. An effective loan modification will help you |
| provide a personal glimpse into your life without | | | | to get the financial freedom you need. |