Hardship affidavit or otherwise known as hardship letter is a savior for many homeowners. It’s one of the solutions during financial troubles that resulted in an inability to pay the monthly mortgage.
The hardship affidavit can be used to apply for home loan modification as one of the required documents. In this letter, you should explain clearly the reasons for your setback and other important details that lenders might want to know. Here are how you can convince your lender by writing a hardship letter most effectively.
State Your Reasons
What you must not forget to say in your letter is the reason for the hardships that fall on you. You should state the cause of your financial decline that you experience. Lenders usually are drawn to reasons that are legitimate such as job loss, lay off, income reduction, a failed business, illnesses, or others. Make sure that it’s a genuine hardship that you experience and never exaggerate your problem to get approved. Your lender will check the validation of your statement, so make sure that it’s a real financial setback.
It’s also best to provide information about when exactly was your hardship occurred. Specific date or range of dates is good to include. Put down some of the actions that you take to recover from the financial hardship like budgeting and finding a new job.
This is to ensure your lender that you’re planning on getting back. Don’t forget to convince your lender about how badly you want to keep your home. This can be one of the reasons your lender approves the financial modification. Lenders tend to agree with negotiation if you want to stay in the house.
State Your Request
In your hardship affidavit letter, don’t forget to say the purpose of your request. This should appear in the opening of your letter as well as the closing. Write them in compelling statements that make your lender believe in you.
Don’t forget to include your willingness to continue maintaining your regular payments once the loan has been modified and reinstated. Convince your lender that you will keep on living there so they can be assured. It makes them care enough to gain what you want.
State Them Clearly
Lenders don’t have time to read to all of the letters coming to them. It’s best if you keep your letter concise and to the point. A one-page letter is enough to deliver your message clearly. Use short but compelling sentences, but don’t fill them with fluff.
Eliminate unnecessary thing details and information while leaving the ones that are relevant for your lender to know. You can ask your foreclosure attorney to proofread your letter and tie your wording.
One last thing that you have to remember is to never put blame on your lender. Thank them for giving you time and say that you’re looking forward to continuing your business with them.
Review your letter one more time to make sure that it’s filled with the most important points including your loan, the date of financial declining, and actions that you’ve done to resolve the problem. With all of those stated, hopefully, your hardship affidavit will be approved be gained the financial modification.