These are actual examples of hardships that get modifications approved:
- Illness of the Borrower
- Illness of a Borrowers Family Member
- Curtailment of Income
- Loss of Job
- Abandonment of Property
- Property Problem
- Inability to Sell the Property
- Inability to Rent the Property
- Mortgage Servicing Problems
- Transfer of Ownership Delays
- Reduced Income
- Failed Business
- Job Relocation
- Death of the Borrower
- Death of Spouse or Co-Borrower
- Death in the Family
- Incarceration
- Divorce
- Marital Separation
- Military Duty
- Medical Bills
- Damage to Property (natural disaster or unnatural)
Notice that "My Realtor lied to me" and "My loan officer/broker lied to me" is not on this list. Keep this in mind when you write a hardship letter. Documenting the hardship is very important to the lender’s or servicer’s loss mitigation department and will be verified during the approval process. Without proper documentation, your file may be flagged as fraudulent. You definitely do not want this to happen for obvious reasons and it will slow down the process or terminate the process completely. There are two important things to remember about loan modifications:
1. A loan modification should be requested only if no other reasonable options are available and/or the homeowner is experiencing a hardship.
2. Loan modifications are designed for homeowners who can afford their homes but not their loans.
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