6 Tips to Help You To Get a Loan Modification Approval

There is a process that can help you get approval for a loan modification. If the steps are followed, you will have a better chance of that approval. One very important factor is how you write your loan modification hardship letter. The layout and what you include in your letter can make a big difference in the approval process.

1. Explain that your letter is to formally request a loan modification. Make sure you comment on this being a follow up to your application.
2. Include the reasons for your financial difficulty. Do not go into exact detail. Just give the main facts.
3. Include the rate range that you are comfortable with and that you are sure you will be able to agree to for the long haul.
4. Give detailed information that will get the financial institution to have faith in your ability to keep up with your new payment plan.
5. Include any information regarding pay raises or pay cuts that could change your current situation in the future. Pay raises will help your cause.
6. Be totally honest! Stretching the truth will not get you anywhere. Financial institutions do not like to be deceived and is the quickest way to be denied.

Make sure to stick to the basic facts in your letter. Whining, complaining, or trying for sympathy will not help your cause as the financial institution is a business. They need cold hard facts to back up your reasons.
They need to be reassured that you will not default on your new modified loan and that you are serious in wanting to keep your home.

Remember! Include the interest rate that you feel is acceptable for you to agree to. Make a budget and stick to it. Do not agree to a higher interest rate even if it is lower than what you are paying now. You could wind up in the same boat down the road without being able to try to rectify the situation.