If you’re seeking a mortgage modification to avoid foreclosure, it’s vital to understand the intricacies to enhance the probability of achieving the results you want. One of the key points of seeking a mortgage modification is to write a hardship letter to your creditors. Unfortunately, many poor habits and strategies backfire as homeowners write their hardship letter, dramatically reducing the probability of the mortgage modification they want. There are 3 main points to remember while writing a hardship letter, some of which may seem counter-intuitive.
Prevent Foreclosure Through a Mortgage Modification
Seeking a mortgage modification is one of the most popular ways for homeowners saddled with debt to prevent foreclosure. However, hardship letter that is often the make-or-break point for many homeowners pursuing a mortgage modification. Writing the letter is a high stakes operation that requires the homeowner’s full attention and savvy to successfully prevent foreclosure.
This hardship letter will showcase why you deserve the mortgage modification, and why your lender can afford to give it to you. Of course, your lender will pore over all of your financial information before approving a mortgage modification, but it’s the hardship letter that makes the case for you. Be sure to include the following 3 elements in your hardship letter.
- The cause and duration of your hardship. Lenders want to know if you’ll be able to make your monthly mortgage payments after a mortgage modification. Thus, if the cause of your hardship is temporary such as a job loss or illness, it’s vital to explain the specifics. The more specific you get about your income and situational hardship, the better your case will be.
- Use the word bankruptcy. If you let your lender know that you’re considering bankruptcy, they’ll be more apt to approve a mortgage modification. Why? Because bankruptcy immediately stalls the foreclosure process, shifting factors into your favor.
- What you want. By listing your goal and the relief that you seek, then you’ll be far more likely to get the mortgage modification terms that you want to successfully avoid foreclosure.