TIPS ON WRITING A LOAN MODIFICATION
HIGH RISK MERCHANT ACCOUNT HARDSHIP LETTER
When it becomes difficult
to pay for your mortgages and you are
also not able to get it refinanced, then
the time has come for you to apply for
the modification of your loan. The first
step you should take is to write a
letter explaining your hardship. This
letter should have all the details
regarding your hardship. You should also
explain why you need to modify your
loan. It is extremely unfortunate for
loan modification applications to be
rejected only because the writer did not
know how to write the hardship letter,
effectively. This article will explain
some points about how you can write an
effective hardship letter.
The letter should be
addressed to the lender. It should be
written in such a way which enables your
lender to understand the financial
problems that you are facing and the
reason why you will not be able to pay
your monthly instalments. The lender’s
decision will be based on many things
one of which is this hardship letter.
You need to write a letter which
convinces your lender that the
modification of your loan is the only
way for you, to save your house. Let
your lender know that saving your house
is your top most priority right now and
you are ready to negotiate any kind of
deal to achieve it.
The hardship letter has
to contain all the detail regarding your
trouble; however be careful not to
explain in too much detail. Your lender
is a business man who will not care
about the minute details of your life
and also, they will not read your letter
if you send them a tragic novel. Your
aim is, not to achieve their sympathy
but their confidence on you that you
will pay your instalments regularly once
your loan is modified. One of the most
important rules is: be truthful and
write the reasons of your hardship
honesty. If you are not completely
honest and your lender finds out about
it, which is most likely to happen, then
he will foreclose your house
immediately. Therefore, don’t write
false reasons and circumstances in the
hardship letter. The bottom line is: you
want to let your lender know that you
are in troubled waters now, but you are
extremely determined to get out of it or
at least stay afloat. A modification of
your loan will not only help the
borrower but it will also help the
lender.
Due to recession you
should already know by now that a very
large number of people are sending
hardship letters to their lenders.
Therefore, if there is any hint of
dishonesty, your application will be
rejected. Don’t bend too low and beg for
forgiveness or pity. You should be
strong and suggest a solution for the
problem you are facing to your lender.
It is also an excellent
idea that you take the help of a
financial advisor while compiling your
hardship letter. You can do a Google
search for templates of such letters.
Contact one of our
helpful account representatives to
assist you in the setup of a
high risk merchant account or
offshore merchant account for a
high risk merchant. |