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.