Loan modification or foreclosure?

Many people are not pro-active and thus this results in a foreclosure.The major disadvantage of getting your home foreclosed is that this will affect almost every type of loan from reaching you.YES !All lenders will be neglecting your loan application after seeing such a poor credit score.Thus you need to stop the foreclosure by getting a hardship loan modification.Never say that you cannot do it.By getting a modification in the loan terms,there are high chances that you will be able to make the mortgage payments regularly.This will go a long way in raising the credit score which will inturn fetch you good credit rating.

Good credit rating=lowest interest rate=lots of $$$ saved in your bank account

Which is most vital in getting the hardship Loan Modification?

The most vital step in getting these modification from the lender is the submission of the hardship letter to the bank loass mitigation department - these people are also called as the loss mitigators and they are completely responsible for reading your hardship letters.So it is your responsibility to wrote a precise,no-junk,accurate content in the letter giving exact details about your current financial situation and what you need from the lender to stop the foreclosure.

There is one thing people tend to forget regarding these hardship letters.I understand that if you are a first time homebuyer and have undergoing these things for a first time,writing the hardship letter will be very confusing.You will keep thinking about what to write in the letter-how to write it and you would have spent a lot of time in just writing a single paragraph in the letter.But there is one major thing that you are missing - the loss mitigators who are going to read your letter are humans and not automated bots.So you can write in your own words and there is no exact format or rules to write these letters.You just need to remember the following things:

=>you have to explain about your current financial status in the letter.

=>Let the loss mitigators know that you are very concerned about the mortgage and would take every necessary action and effort in paying the monthly mortgage,

=>The loss mitigators must understand that you are a serious person who does want to pay back the mortgage with the loan slightly modified.

WRITING AS A FIRST-PERSON IS BETTER than writing as a third-person.So no problem in writing these letter like you are speaking to them personally.Just imagine that you are sitting before them and explaning things to them that have caused you miss the payments.

The hardships that have caused you serious problems temporarily must be expressed properly to get the hardship Loan Modification as quick as possible.These hardships could be because of divorce with your spouse or a recent job loss or reduction in income etc,.It could be anything - you just need to tell them the sincere reasons.For more details on the mortgage and loan modification,read Loan Modification Hardship Letter Template and the FHA Loan Modification Guidelines .You can also have a look at the following articles:Wells Fargo Hardship Letter and the Wells Fargo Loan Modification to know more advice.