Mortgage Modification Program and The Infamous Hardship Letter

Trying to get started with a mortgage modification program seems difficult.  Taking that first step may be a little intimidating.  You want to do everything right.  You don't want to be rejected.  You really need this, or you're going to lose your home.  The hardship letter is the first hurdle you'll jump in your mortgage modification program.  It's not as hard as they say it is.

However, don't go thinking that just anyone can tell you how to do this.  I worked in a mortgage modification program for 25 years before I learned some of the secrets to writing hardship letters.  While there are many steps in your mortgage modification program, I can't possibly give them all to you now.  Instead, I will give you some good advice on that initial point of contact in your mortgage modification program--The Hardship Letter.

Mortgage modification programs weren't born yesterday.  Nine times out of ten, the lender is better off negotiating better terms than losing $50,000-$60,000 in a foreclosure.  Especially in today's economy, lenders really don't want to push through a foreclosure.

Your hardship letter will be the pivotal point in your mortgage modification program.  This is your audition.  The term "hardship" in and of itself is deceiving.  Sure, you may not have been given a fair shake in life, but we're not going to concentrate on that.  Instead, I like to think of the letter as an offer.

The offer you put on the table is that you'll never miss another payment in your life if they help you with this.  With over 53% of loans that went through a mortgage modification program going back into default, they don't want to know why you can't make a payment.  Tell them how you never want to miss a payment again.

The main purpose of this program is to tell about your financial status, now.  The loan modification program wants to see no more than 40% of your income taken by your mortgage.  Otherwise, the chances of default are too high.

What are you going to do about this?  Well, if you have any extraneous expenses, you need to show that you are making an effort to cut back on costs and show that you are serious about this.  Cancel the cable.  Your bank statement shouldn't produce a long list of all the places you ate out in the past two months.  A sense of entitlement to those little extra perks you've been putting on credit won't help you with the mortgage modification program.

Here's what you need to put in the actual body:

• Name
• Address
• Your lending institution's name and loan number
• To Whom it May Concern
• Something no longer than a page or two outlining your financial situation and need to find a mortgage modification program.
• Sincerely
• Your signature and the co-borrowers signature if applicable
• Date

Now you know what to write.  Bear in mind that you really don't want to write an autobiography.  An overworked loan mitigation specialist with hundreds of backed up mortgage modification program packets has heard it all.  They simply don't have the time or patience.

This is only the first step in your mortgage modification program.  If you plan on going the DIY route, you should seek educational resources.