A loan in simple words is a debt that is taken from a money lender, a bank or some other financial institution with the condition that it is paid in a certain period of time. But then, what happens when you happily use the entire loan and cannot repay the money in the limited time? Don’t worry. There are no problems without solutions. If you are unable to repay your loan to the lender on time, you may be eligible for a loan modification. A loan modification is when your lender allows you a decrease in interest rates and an extension in the time limit or some other extension of relief.
This modification process can be exhausting and confusing, however it is a highly recommended option for those facing foreclosure. This process involves many phases. One of the phases is writing a short sale difficulty letter. In a hardship letter, you ask the lender to consider your loan modification request.
More often than not, people hire professionals to write their hardship letters, but it’s always wise to write your own letter. The reason is very simple. This letter defines your legitimacy to qualify in the process. It has to be personal and it has to explain your financial situation, including related issues. And who can be more specific than you when writing about your problems?
The basic rule of thumb for a hardship letter is to write your financial situation in a very descriptive way. Explain why you couldn’t return the money as you were supposed to. Do not keep anything that refers to your monetary classification. You can mention the reasons for non-payment, such as illness, death of spouse, or anything else that may have caused your inability to pay.
The length of the letter is not significant as long as it serves its purpose. When writing the hardship letter, be very careful not to mention anything that you may regret later on because this letter, if it is going to be recorded information in your file, may pose problems for you later in life.
It would be nice if you can mention that bankruptcy is not an option for you at all. It is very important not to give lenders any presumption that your current condition is due to them. That would give the wrong impression. Communication is a very important factor.
You may want to write in very clear terms. About what your intentions are, and try not to hold anything back. You should also ask them to acknowledge your buyer’s contract of sale and approve your loan modification application.
When sending the letter, the loan number must be mentioned. Your address, phone number and full name must be provided. The letter must be sent by certified mail with a return receipt requested.