One way to avoid foreclosure is to apply for a modification if refinancing is not an option. One of the first steps is to write a loan modification hardship letter that lets your lender know all the important information. Many times rejection of a loan modification is due to a poorly written hardship letter.
The hardship letter is intended to describe your financial circumstances to your lender, to tell why you need a loan modification and convince them you must have help to repay your loan. You should make your desire to keep your home very clear, emphasizing that this is the most important bill that you have.
Of course your lender needs to know your story, but just the basics. Be concise and honest. This is better than being self-pitying or whiny. Emphasis how important keeping your home is to you and point out that with a loan modification you will be able to do this. You lender has to feel that you will not default on your loan if it is modified.
Because of the current economic situation, many people are approaching their lenders with requests for help. You want your application to stand out from all the rest. You letter should be short, no more than a few pages. Be positive and proactive in your presentation, showing how you can take control again. The letter must convey a message that your are a responsible homeowner who is just going through a rough time. You need your lender to seriously consider your application so you will get the second chance you need.
There are two common methods of getting support before approaching your lender. One is to find a reliable financial advisor who has a solid, successful history of helping homeowners who are in the same situation as you are. Another way is to search online for templates of hardship letters. These samples will help you write your own letter in a way that is most likely to result in home loan modification.
The key to repaying your mortgage in difficult circumstances is to write a convincing, persuasive loan modification hardship letter. You must learn to do this so you can make a positive impression when approach your lender.