subject: Loan Modification Hardship Letter - Do's And Don'ts [print this page] If you are in the process of applying for a loan modification, you are probably struggling with writing your loan modification hardship letter. This is the focal point of your application and will have a major impact on the approval or disapproval of your application. You are formulating how you will relate your financial misfortune to your lender. You should approach this task carefully, writing and rewriting!
How long should this letter be? Most experts agree that it should only be 1 to 1 1/2 pages at the longest. Most homeowners have a definite misunderstanding of the intent of this hardship letter. Many people think it is supposed to be a long, soppy sad story!
This letter is supposed to communicate two major things to your bank. It should succinctly explain the events that led to your financial problems. What financial hardship occurred? you don't need to greatly embellish this. If your spouse had cancer, explain that. Discuss the overwhelming medical bills and the lost salary, but don't go into detail about every part of the cancer treatment and procedures.
Crystallize this information so that a very busy loss mitigation specialist can quickly digest the kernel of meaning you need them to understand. Equally important, this letter needs to show a positive view of an improving situation. They need to see that you are financially stable enough to make the new, modified house payment in the future.
So, you see that your loan modification hardship letter should be very concise. You are writing a clear explanation of your past and future financial condition. It should never exceed 1 1/2 pages in length.
