Are Lenders Human Enough to Understand My Hardship?

Well that’s a great question.  And you’re probably not the only one asking it.  Many are wondering “Are lenders human enough to understand my hardship situation?”  What are the circumstances under which they will grant a loan modification?

Karen had just lost her job when her company started down-sizing.  Her daughter was in the hospital and the medical bill was mounting.  And to make matters worse she had just gone through a terrible divorce.  She felt certain her lender would not understand her difficult situation and grant her a loan modification.  Until she discovered how to “Write a Hardship Letter.”  Let me take a minute and show you how right now.  

Most Mortgage Companies will ask you to write a Hardship Letter in order for them to even begin considering you for a Debt Work Out.   Don’t make the mistake most people make and keep on trying to explain your difficulties to the person who calls about the mortgage on the phone.  Typically they have little power to help let alone begin to understand your case.  Their job is simply to call you and ask for the missed payments.

But if you can sit down and write an actual Hardship Letter that will place your case in front of the right people you stand a far better chance of getting someone who understands your situation and may willingly help you.  Isn’t that what you really want from your lender?  A listening ear, an understanding heart and a willingness to help you.

Now this Hardship Letter that you will write will have more meaning if you have established a track record of faithful payments.  Then you can legitimately tell the story that “something happened” in your life to cause you to miss payments.  And you can point out that “whatever it is that happened” is no longer happening.  “Simply put the difficult dark days are over and the sun is shining again for you.”

You full intention in this letter is to take an opportunity to appeal to your lender to give you a second chance. This is not to be a rant and rave letter where you blame the lender or complain about the services they have or have not done.

In other words even if you missed payments because the bank made a mistake and did not take the money out on time, or if they cashed a check you had postdated two weeks early and so your mortgage check bounced, this letter is not the time or the place to mention that.  In this letter you want to appear to take full responsibility for your payment defaults and show yourself strong and able to pay in the future.  

You must write in such a way that you appear honest and truthful in the representation of the facts.  Tell them exactly what happened that caused you to miss payments.  Then you must prove to them that this was merely a temporary situation and you are now back on your feet and in a position to make your payments on time.

You need to also mention a viable and legitimate excuse for falling behind.  To say “well I had financial problems” is not sufficient.  Things like a loss of a job, illness or death in the family would be an acceptable reason to fall behind on your mortgage temporarily.  Let us give you the foreclosure advice you are seeking.  We can share much more sound advice with you to help you Foreclosure and Start Building Wealth.

The Foreclosure Doctor (Online)