How to Write an Effective Loan Modification Hardship Letter in 2022?
What is a Loan Modification Hardship Letter? A loan modification hardship letter is a letter you provide to your lender explaining the circumstances that caused you to fall behind on your mortgage payments and why you are now able to resume making regular monthly mortgage payments. It is important to provide your current financial information and demonstrate that your expected modified mortgage payment is no more than 1/3 of your new gross monthly income. How Long Should the Hardship Letter Be? Make the hardship letter short and sweet. The letter should be no more than 1-2 pages. Most Servicer Representatives are unlikely to read a lengthy letter. In addition, your Point-of-Contact may change and multiple stakeholders within the Servicer may be scanning this letter. For those reasons, you should make sure the letter is succinct and focuses primarily on hard numbers. How Should the Hardship Letter Be Structured? Make sure the hardship letter is organi...