Hardship Letter Template for a Loan Modification Request

The reason for this is that although your lender is given an incentive by the government in the form of a financial grant, they would much prefer you to continue paying your mortgage at the standard rate and not a new lower rate that will give them less of a profit. That said if you can convince them that you are genuinely in financial difficulty and are likely to default on repayments or in fact have defaulted then their preference would be that, if you can, you continue to pay back the capital of the loan and that they do get at least some level of interest from you. In other words they can still make a little profit and avoid the problem of having to take on another house due to foreclosure that they are unlikely to be able to sell at a price that could repay the loan if at all. This is more convincing when you consider how many homes are facing foreclosure and the number is growing month on month. With so many houses facing foreclosure and repossession you can see that mortgage companies will be very wary that they may not, as suggested, recover the full amount of the capital owed on the mortgage. This will be their first concern but even more disastorous would be the potential for not being able to sell the house at all and be left with the problem of maintenance and keeping the property in a saleable condition on the expectation that the housing market will eventually pick up again.Clearly this concern will help your position but only if it is believed that you truly are in financial difficulty. The problem from your perspective is demonstrating that you are actually having issues with making your payments. You should be honest about your situation and not try to make out you are struggling if in fact you are not, there will be legal documents to sign and you will need to present hard evidence of your circumstances for review, so do not be tempted in into trying to fool your lender. There would be serious repercussions if you did this and it was discovered.So you can see that convincing them that you are in difficulty is crucial for getting accepted into the program. The best chance you have of doing this effectively is to put together a well constructed and clear hardship letter that gives the lender all the information they need in order to consider your application. There will be times that the lender will provide a form for this purpose and if they do make sure that you fill it in completely, ledgibly and with no spelling mistakes. An alternative method is to use a hardship letter sample on which to base your application and contains all the information the lender needs.