Documenting the hardship letter is very important to the lender’s or servicer’s loss mitigation department. It affects the approval process. If you’ve got poor documentation, your file may be flagged as fraudulent. You definitely don’t want this so you must know few basics while documenting the hardship letter. Following are few of the hardships that get loan modifications approved:
- Illness of the Borrower
- Loss of Job
- Abandonment of Property
- Inability to Sell the Property
- Inability to Rent the Property
- Reduced Income
- Failed Business
- Job Relocation
- Death of the Borrower
- Death of Spouse or Co-Borrower
- Medical Bills
- Damage to Property (natural disaster or unnatural)
You must know that Loan modifications are for homeowners who can afford their homes but not their loans, and so you should apply only if no other reasonable options are available and you being the homeowner are experiencing a hardship in actual.
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1 comment so far ↓
Ive seen in the past how Job Re locations can hurt your chances to get an approval.
I believe the banks want something steady any large migration can result in instability, lowering your ability to pay back the loan.
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