Foreclosure Hardship Letter Part 1 - How To Write A Compelling Hardship Letter

Foreclosure Hardship Letter Part 1 - How To Write A Compelling Hardship Letter

In this series of articles I will walk you through everything you need to know to write a compelling hardship letter. Knowing what to write and what not to write are equally important, be sure to read pert 2 "What Your Lender Really Wants to Hear" and part 3 "What You Should NEVER Tell Your Lender." For more information on writing a foreclosure hardship letter check out my popular FREE special report "How To Write A Killer Hardship Letter" available on my website.

Your lender knows that something happened in your life that made it difficult to make your mortgage payment. They call this a hardship and it’s your ticket to lower interest rates and other wonderful benefits. Don’t get me wrong, nobody wants a hardship, especially those who are going through them right now. It’s hard to think about the possibility of many of these hardships in my life and I certainly would not wish them on anyone.

In a nutshell a hardship letter is something most Mortgage Companies will require to consider you for a "Work Out". This is your opportunity to appeal to them to give you anther chance. This should not be used to complain about what they have done or not done to make your situation worse. This letter must be honest and represent the facts clearly. It must prove to them that the situation that caused you to fall behind was temporary and you are now in a position to make your payments on time. You must also have a legitimate excuse for falling behind - financial problems in itself would not be an adequate excuse. Loss of a job, death in the family, unexpected expenses or an illness would be an acceptable reason to fall behind on your Mortgage temporarily.

Of course, you need to make it your own so it fits your situation. Your hardship letter should be in your own words and describe your situation in a factual manner. Don’t be afraid to show your emotions and really tell your story. Don’t make it bland and dry - you want the people that read your letter to connect to you on a personal level rather than a strictly business level.

Here Is Some Suggested Contents:

- - Identifying information (for you and your loan)
- - Describe your hardship and reasons for it (in detail)
- - Broad overview of your income and expenses. Explain any recent changes in income or expense and if you expect any changes to happen in the near future
- - Describe any sudden and unexpected changes in your income
- - Describe any sudden and unexpected changes in your expenses.
- - The amount of money you have saved to offset any delinquency or to pay toward a workout plan

Where To Begin?

Ask your self these questions:

1. What caused me to get behind?
2. Can I afford the mortgage payment now or in the future?

What Caused You To Get Behind?

It is very important to be able to figure out if this is a short term problem or a long term issue. If it is short term then you have a great chance at resolution. If it is a long term issue then you must make some changes to get back on track.

Can You Afford The Mortgage Payment Now?

You need to look long and hard at this one if you need Foreclosure Help. Reality must rule your answer. Many people say they can afford the mortgage but never take a look at their budget and see what it says. Create a monthly budget... look at your income vs. your expenses and chart them. Is your income for the month larger than your expenses? If "yes", then we are going in the right direction. If not, you need to look at what expenses you can cut or what income you can gain.

The bottom line is that if you intend to keep your home no lender is going to give you another chance if you can't afford the payment.

Writing a hardship letter is not difficult when you know the elements which must be present and those better left out. I recommend using a worksheet like the one included in our popular FREE special report "How To Write A Killer Hardship Letter" which is available on my website. For more information on mortgage modifications, short sales and hardship letters visit our website.

Check out some of my other articles:

"Top 10 Mistakes People Make When Writing Their Hardship Letter And How YOU Can Avoid Them"

"Foreclosure Hardship Letter Part 1 - How To Write A Compelling Hardship Letter"

"Foreclosure Hardship Letter Part 2 - What Your Lender Really Wants to Hear"
"Foreclosure Hardship Letter Part 3 - What You Should NEVER Tell Your Lender"

"Get Your Automatic Mortgage Rate Reduction"

Article Source: http://articlepowerplant.com

Tom Mack simplifies the mortgage modification process. Find out more about Loan Modifications and “How To Write A Killer Hardship Letter” with his popular FREE Special Report, available at:  => CreativeLoanModification.com

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