Questions To Answer In A Financial Hardship Letter
When you are negotiating a loan modification because of a hardship, there are high chances that you will be asked to submit a hardship letter. This letter has to be submitted to your mortgage lender. Approval of a mortgage loan modification request is mainly dependent on the hardship letter. There is only one chance of getting it right. In case you don’t do well the first time, you will not be allowed to resubmit your hardship letter.
Please State Your Hardships And Problems In Making Your Mortgage Payments.
When you are answering this question, mention briefly, things that have happened which have disturbed you financially. Don’t be superfluous in your language, just be brief and chalk down precisely what happened. For ex: From the time I received my mortgage, my job hours were cut from 40 per week to 30 per week which has affected my salary to a great extent.
You may also present a time line if you want. But be sure not to tell a story, just mention facts. If you research properly and work hard on the hardship letter, you can get a good loan modification deal.
How has the hardship affected you?
In this question, it is wiser to layout the idea that you have to steal from Harry to pay John. It is not possible that you pay all your debt payments. You should also explain that you want to find an alternative way, which will get you a mortgage payment that is affordable and this will eventually help you in staying in your own house. If you have children, state that you want to keep them in the school they are currently studying in etc. if you want to modify your mortgage, be well prepared to answer such questions.
What Is Your Current Situation?
This is where you can talk about stability in your life and other facets. You can paint a picture that you have had a pay cut and you are finding it difficult to make ends meet. In a way, make a plea that you will be unable to make the mortgage payments in the future and you have set aside some money for the current mortgage payment. You can use this for bargaining a good loan modification.
