Why a Loan Modification Letter is Not as Insignificant as it Seems

When a homeowner is requesting a home loan modification, they must present documentation of their income, debts, and taxes, as well as a loan modification letter stating the cause of their current financial hardship. In order to get the lenders to take you seriously, you must put real effort into the letter you send in with your application.

Many homeowners who do not fully understand the loan modification approval process are inclined to believe that the letter is not as important as other aspects of the process, but that is not true. While the letter is not cold hard facts and numbers on paper, they do convey the homeowner's sincere need for the loan modification assistance.

The loan modification letter is equally as important as any other part of the process, if not more so important. If a homeowner's letter is not well-written and convincing of his or her financial hardship, the lender may very well deny the application even if the numbers on their income and debt paperwork show that the homeowner should be qualified for home loan assistance.

If a homeowner does not include a loan modification letter, chances are the lender will not even give the application a second look. The numbers may be on the forms and pay stubs, but the real intent and necessity is shown on the letter. A heartfelt loan modification letter can change the entire application process to the homeowner's side and push things along. Every person who has researched loan modification knows to send a letter in with their application, and means to make theirs stand out and command attention.

Be very concise in your loan modification letter and leave nothing up to chance. State how your finances were before you met financial hardship and when you took out the loan. You could have been well off before but then got laid off, you could have been demoted or gone through a divorce and no longer have the income to afford your bills. Alternatively, you could have never been that well off in the first place, but certain circumstances like medical bills have rendered you financially vulnerable.

There are a variety of situations, and there is someone else out there who has had it just as bad or worse than you have who needs a loan modification. You need to show that you need that modification more than anyone else in a subtle manner. Convey that no matter how you budget your money there is no way you can afford to pay your mortgage on time every month.

Lenders would like to be able to tell you to stop paying for meals and then you could afford your mortgage, but then of course then who would they get their money from? Be very clear, concise, and make the most convincing argument you can in your loan modification letter -- it can be the defining factor in your loan modification application.

"Home Loan Modifications Hardship Letters", Mortgage Lending Modifications