In this second article in this three-part series, we discuss the documents you will need to provide to your lender as part of your loan modification application, focusing on the hardship letter. In part one, we reviewed the criteria that lenders look for when considering a loan modification application and alternatives if a loan modification won't work out (see Steps to Get a Loan Modification: Part I).
The exact list of documents your lender will require from you may differ from the list below, but these are the typical documents you may need to provide as part of your loan modification application:
Your hardship letter should be simple and based on facts. It should be financially informative. It should clearly outline the excessive financial burden you are trying to manage. It should be sincere. It should express your hope of staying in your home and the reasons why doing so is important to you and to your family. Explain why modification is the most sensible approach for your lender and for you.
Your hardship letter should do three things:
Keep in mind that you're looking to modify the terms of your mortgage contract--you're not looking to sue your lender (not at this point, anyway). Don't contemplate or assert fraud in your hardship letter.
Next: In Steps to Get a Loan Modification: Part III, we list the types of hardship that a lender will typically accept as valid.
Previous: To review the basic criteria that lenders look for in loan modification candidates, and options to consider if a loan modification request fails, go back and read Part I.