How to Write a Loan Modification Hardship Letter That Gets Results

Modifying your loan is the way to avoid foreclosure, particularly if you cannot refinance. The loan modification hardship letter tells your lender what they need to know, and is a basic step toward solving your financial woes. Many loan modification requests are denied merely due to a loan modification hardship letter that was poorly written.

Your hardship letter should describe your financial dilemma to your lending institution, explain the reason you need a loan modification, and show them that this is the help you need to keep repaying their loan. The lender must see that you are determined to keep your home, and that this take top priority in your financial affairs.

Yes, your lender needs to know your story, but you must stick to the basic facts. Be brief and to the point. Sincerity makes for a more winning appeal than complaining or tear-jerking. Be honest, underscore how important it is to you to keep your home, and justify loan modification as the path to repayment of the loan. Your lender must believe that you will not default again if they modify your loan.

Due to the current economic crisis, lenders’ phones are ringing off the hook with tales of woe, and you do not want your plea to be overlooked. Your letter should be a few pages at most, preferably shorter. Take a positive, can-do attitude in your letter, and present them with your plan of action to get your finances under control again. The underlying message needs to communicate to your lender that you are responsible, diligent, and merely going through a rough patch. Their serious attention to your request is the second chance you need.

There are two main ways to get the support you need before you approach your lender. Find a trustworthy financial advisor with a proven track record of helping homeowners like you, one who can help you state your particular case. Also, look for online templates that show effective hardship letters. These sample documents will show you how your letter should look in order to get the loan modification you need.

Loan Modification Process – Right and Wrong Way to Complete the Homeowner Financial Statement

The loan modification process involves preparing and submitting your financial statement that details all of your monthly income, monthly expenses and bank balances. There is a right and wrong way to complete this very important form, so make certain that you provide your lender with the correct information so that you have the best chance of approval. Here are some helpful tips to know before you fill out your loan mod forms.

The loan modification process involves the completion of an application package supplied to you by your lender. Based on the information you include on these forms, the bank will make a determination if your situation is qualified for a loan workout or not. If you prepare the financial statement the right way, then you will prove in black and white that you do meet the standard approval guidelines and deserve a loan mod. If you fill it out wrong, then chances are slim that you will be offered any time of assistance.

The right way to move through the loan modification process is to learn the basics about what is required in order to meet those standard approval guidelines. If you just take a shot at it working then your chances could be pretty slim. You can use some helpful resources designed specifically to help borrowers figure out just what is needed to qualify for a loan mod – this upfront preparation will really make the difference when dealing with your lender. If you don’t know what you are even trying to qualify for it is pretty difficult to get it right. To make it easier, you can use a loan modification software program that mimics the standard approval guidelines to prepare your financial statement the right way. You will be able to know ahead of time just how much monthly income, monthly expenses and bank balances you need to prove in order to fit right in.

Unfortunately, many homeowner attempt the loan modification the wrong way. Without even knowing what is required to qualify, they will just slap something together and send it into their lender for review. This is really taking a big chance, and when your home is on the line it simply makes sense to do everything you can to increase your chances of getting help. You need to know the right amount of monthly income needed to qualify and how the approval formula works. If you were cooking a new dish you would certainly use a recipe and follow the directions, right? Well, why not use a step by step guide that provides you with the recipe for loan modification approval?

How to Stop Foreclosure and Get a Loan Modification – Tips From a Massachusetts Lawyer

How to stop foreclosure, modify your mortgage, reduce your interest rate, and decrease your mortgage payments — Tips from a Massachusetts lawyer.

If you are behind on your mortgage payments, your interest rate is about to adjust, or your payments are simply becoming unaffordable, the first thing you need to do is take action.

The worst thing a homeowner can do is nothing. The mortgage company won’t seek you out to ask you if you want to solve your financial troubles.

Sometimes, simply by calling your servicer and explaining the reason for your late payments, you can actually stop impending foreclosure proceedings and modify your mortgage.

Here in Massachusetts, the mortgage company is legally required to give you a “90 Day Notice” when you default on your payments. This notice — which the mortgage company must provide to you as a condition to starting foreclosure on your home — tells you that you have 90 days before your home can be foreclosed on, and allows you to make up the missed or late payments during those 90 days. If you get one of these notices, it is vital that you take action immediately.

If you take the rights steps (which often means getting help from a qualified Massachusetts mortgage and foreclosure lawyer), you may be able to get your loan modified at this point.

Why? Because the mortgage company wants to keep you in your home as long as it can get a reasonable payment amount from you. It knows that your loan has become unaffordable to you — but if you can prove that you can afford a reduced payment, you often will be able to stop foreclosure or modify your loan.

How to do this? The best way is to get legal ammunition. There are a variety of legal claims that you might be able to make against your mortgage company that you don’t even know about. For example, did you know that if there are material errors in your HUD-1 Settlement Statement, you may be able to rescind your mortgage under the Truth In Lending Act? Or that if a broker put you into a mortgage with the intent that you refinance it in a few years, the broker may be liable for “predatory lending”?

Massachusetts has foreclosure laws that are extremely favorable to homeowners, and the Massachusetts Attorney General has been vigorously enforcing these laws against big lenders. You may even be able to get money damages against your mortgage servicer if they mismanage the money in your escrow account. The number of claims is only limited by your (or your lawyer’s) knowledge of the law.

Once you have the legal ammunition you need against your mortgage company, the next step is to take your claims to them to demand a loan modification or other foreclosure assistance. If they refuse, you can take them to court. In order to get you to dismiss your claims, most servicers will allow the foreclosure to stop or do a loan modification.

So, a foreclosure isn’t always inevitable when you are unable to afford your mortgage payments anymore. With the right help, a default can be the first step in getting your loan modified.

How To Choose Your Mortgage Loan

Are you excited about purchasing your first home? Or maybe this isn’t the first, but you should be excited anyway! It’s a big step and a big decision. Finding the right mortgage loan is key. The key to saving yourself money and probably a few headaches down the line.

Here are some helpful hints on finding a good mortgage loan.

First, consider the home you are planning to purchase. Know what you are looking for and want, but also realize what your limits are. How much home can you afford? Any mortgage company can tell you what they think you can afford, but know what that all breaks down for you per month.

Finding quality mortgage lenders is easy. Most companies are well known. There are several different places to look as well. Start with your own bank. Will they loan you the money? At what interest rate?

Another place to look for a mortgage lender is real estate offices. They often have their own lending companies set up to help their customers. Mortgage lending is big business. Fear not, there are places out there that will loan to you.

You can also find mortgage loans available to you online through mortgage companies. While they lose the personal touch of being near to your home, they often have the best rates available. It can’t be any easier to look from site to site to find the best rates out there.

When talking to the mortgage lenders, there are things you should know. You will need to know your income and expenses. You will need to know your basic credit rating. Good, Poor, or Excellent.

Then, there are things you need to find out about the lender as well. What are the rates? What are the terms? What additional charges are there? What length of loan can they give you? All of these things are things you can compare from one lender to the next. Easily.

Compile all this information. And then choose. Choose based on how you felt about that lender, about how they helped you, and the bottom line. Who has the best deal? Who can you trust? Getting all this down, will give you the understanding of what to expect from a lender down the road.

Refinance Loan – Will It Work For You?

The state of Wyoming is located in the west region of the United States of America. Most part of the state is covered with the mountain ranges. This state has the least population in America. The capital of this state is Cheyenne and most residents of Wyoming live over here.

If you live in Wyoming and desire to get rid of your mortgage loan fast then you can do it now because Wyoming refinance rates are kind of stumpy currently. A refinance loan is a loan that helps you eliminate your existing loans and make payments each month for a loan that has more favorable conditions for you.

There are various kinds of refinance options available. For example, there are cash out refinance loans that provide extra cash that can be utilized to pay off the existing debts besides paying off the mortgage loan. There are refinance loans that extend the duration of repayment to up to forty years, allowing the consumer to save up more money each month. Whether you have a poor credit score or a good credit score you can apply for refinance loan if own equity in Wisconsin.

However, before you make any deal with any creditor you should have entire information about refinance loans. Search it over the World Wide Web and you will information that will make you completely educated regarding the refinance loans. Moreover, you should also search for the ways through which you choose authentic lenders because all lenders cannot be trusted as there are many fraud people present who are trying to dupe consumers and engulf their money.

There are countless benefits of refinancing your loans. Many people have lost their jobs in this current situation of financial recession. They have created huge amounts of debts because their income is restricted. To easy out this condition the government came out with several debt relief schemes and refinance loan is one of them. Stay ways from bankruptcy as much as you can because it can totally destroy your credit history and opt for refinancing to eliminate your debts safely without harming your credit scores.

Do not delay if you are having problems in paying off your debts because refinance loan is not available forever, it is only here for a short period time so take benefit from it as early as possible and choose the refinance deal that is the most appropriate for your financial condition.