Tips on Writing a Loan Modification Letter to Your Provider

Applying for a loan modification may be fairly simple for you and any homeowner. But many homeowners have difficulty writing the loan modification letter that claims hardship that they need to send in with their application. Lenders require this letter in order to learn about the circumstances surrounding your financial hardship and why you want a modification on your mortgage.

The thing that makes the loan modification letter so difficult is that it must contain just the right amount of information. The letter you send in should include the following:

-Special circumstances which led you to be in financial hardship.

-If you have made any late payments, and why you did if you have. If you have not, explain how you managed to pay while in financial hardship.

-The lower interest rate you are looking for.

-How you intend to manage your mortgage payments after the modification. (Budget, promotion, etc.)

-Your clear intent to work with the lending company to staying in your home.

This small but expansive list can intimidate any homeowner who is not sure how to approach their lender. The pressure on the letter can either seem too great or they are caught up in whether their lender will see the letter in a positive light.

The truth is, writing it is not difficult once you know what to include and what to avoid. When writing the letter do anything possible to avoid the following:

-Being too long-winded with any aspect of the letter. Don't go date by date into your circumstances and try not to whine about them either. State the facts.

-Do not lie on anything in the loan modification letter. If your lender finds any of the information you provided false, they can deny your application.

- Do not show contempt for the lender in any way. Portray only that you want to work with them to reach an agreement and stay in your home.

-Don't try to edge in the name of a friend or family member who also needs loan modification. The letter is to focus on your problems, and not someone else.

The things to be left out are basically common sense. The purpose of the letter is to not only convince your lender that you need it, but to also make sure that all of your reasons for requesting modification are known. There are things in life that just can't be avoided, especially things that lead to being financially unstable. Follow the points above and you'll write a great loan modification letter to send in to your lender.

Emma Lanier, "Home Loan Modifications", Mortgage Lending Modifications