How to write a hardship letter for modification

Looking for help with a troubled mortgage or foreclosure? Call for immediate assistance! A financial hardship letter should explain to your lender why you are in financial distress and your capacity to resolve it.

How to write a hardship letter for modification

We were denied the 1st time, and told we didn't "qualify", but were given no other explaination as to why. Even the customer service reps were unable to tell us why. Then we defaulted a few months later as well as on ALL our credit cards and reapplied in November ' I called our bank to see what was going on with our application.

I was told we passed a "preliminary review" and our app. Why would someone NOT qualify after making 3 months of successful, on-time payments? Does anyone know if being in default of revolving debt, such as credit cards have anything to do with NOT qualifying?

We were told after almost 8 months, that if we could make the final 3 payments on time, we would be approved for a permanent mod.

how to write a hardship letter for modification

Low and behold, we received a call from our mortgage company that the paperwork got kicked back because there were liens on our house. And guess who put the liens there? So we have no idea if we can do another "trial" mod and see what can be done, or if this the end of the line.

We planned on taking care of the credit card issues once we received our permanent mod, because we felt keeping the house was a priority we have 5 children. So short answer yes, it could be because of credit card debt.

If anyone had been through this, and knows what can be done, or what our next step should be, please help! Dan Harris 17 On March 4th, the Obama administration revealed its plan to help millions of distressed homeowners in danger of foreclosure.

The program was proudly touted as the definitive way out of the current housing and mortgage crisis. Since April the program is responsible foractive modifications. Although there has been plenty of time for loan servicers and lenders to strengthen their efforts and start making a considerable difference in preventing home foreclosures, many servicers have repeatedly chosen to aggravate the crisis through noncompliance and excuses.

Prior to the introduction of HAMP, servicers' efforts to modify loans had picked up a considerable amount of steam. By March of loan servicers' efforts in private in house modifications were running at a pace ofper month. That means that if left to their own devices servicers and lenders had they continued at that pace would have completed modifications on more than 1.

It is now harder than ever to get assistance from your lender due to the new heavy documentation and government bureaucracy created by HAMP. It is not however an impossible task.

Even with its bureaucratic red tape many homeowners have been able to get payment reductions that helped them save their homes. If you are looking for assistance with HAMP be sure to get up to speed and learn everything you can about the guidelines and requirements.

With HAMP you only have one bite at the apple. You have to get it right on the first try. Here is what you will definitely need to submit a complete file to your lender: Last 4 paystubs for everyone in the house who earns money.

If you don't have paystubs, you will need a cash letter from the wage earner defining what they take home monthly. Yes your lender WILL accept this, it's in their best interest. If you don't have them, go to your bank and get a 2 month printout, make sure that someone in the branch stamps and signs the printout or your lender may not accept it If you are self employed you will need to provide a profit and loss statement that spans a minimum of 3 months, I recommend you do this for a 6 month period A well written concise ONE PAGE hardship letter An income and expense sheet that shows Monthly Numbers for Gross Income, Net Income and all household expenses If you take the time to prepare and do it in a well organized manner you will improve your chances of getting a modification under HAMP greatly.

Remember the disclaimer they read you when you call? It's the one where they tell you they are required by law to advise you they are attempting to collect a debt and anything you tell them will be used for that purpose. No matter how nice the representative sounds, they work for the lender and they are there to help collect your payments.

I have sent much proof this is not true but Bank of America still refused to correct this error. I just went through the same thing with them and received my letter if denial today!!! After speaking to them they said I did not return requested information within 30 days.Do you need to write a request payment letter?

While contacting clients and asking them to pay bills are past due is unpleasant, it is something people who own and manage businesses certainly have to do from time to time. 1 Goodwill is the value of the name, reputation, location, and intangible assets of the firm.

How to write Authorization Letter to Debit Account with a how-to guide to help you write the latter and a template along with a sample to help you understand the format of the letter. In , a homeowner named Dan Bailey got a lot of publicity for writing a hardship letter to Countrywide's chairman, Angelo Mozilo, trying to induce the lender to approve a loan modification.

Overview. It is a great relief when you have finally managed to pay off that personal, home or car loan that had you strapped for many years. You can finally let go of the worry of having to pay a certain amount every month.

A hardship letter is a key part of securing a mortgage modification. tells how to write one. A key part of securing a mortgage modification is a hardship letter.

Writing an Effective Hardship Letter - Mortgage Relief Project