People asking for loan modifications should write mortgage hardship letters that include explanations of their financial hardships, potential solutions and steps already taken to address the hardships, advises Bankrate. If more than one borrower is listed on the loan, each person must sign and date the hardship letter.
Borrowers writing mortgage hardship letters must include specific reasons for their loan modification requests, such as job losses, illnesses, death of the household's primary earner or interest rate adjustments that have increased monthly payments to unaffordable levels, as Bankrate explains. People who want to keep their homes should include a statement to that effect. Borrowers should also propose viable solutions specific to their hardships, such as requesting reductions in their balances or interest rates.
Borrowers writing mortgage hardship letters must also include the steps they have taken on their own prior to requesting loan modifications, such as details of job searches, failed attempts at refinancing and cutbacks made to household budgets, according to Bankrate. A borrower who has enlisted the help of an attorney should include the attorney's name and contact information in the hardship letter in addition to a summary of that attorney's advice. To close mortgage hardship letters, borrowers should include their contact information, such as phone numbers and email addresses, along with a statement that they are awaiting the lender's response.