When negotiating with your lender to reduce your monthly payment, mortgage rate, or principal balance, the most important leveraging tool at your disposal is the mortgage hardship letter. Without an effective hardship letter, your chances of loan modification success are reduced immeasurably.

There are three very important things to keep in mind when preparing to write your hardship letter:

1.Emotionally Effective
Remember, this letter is being read by a person just like you and me who may be facing similar economic hardship. That said, make sure your letter evokes emotion. If you have an Adjustable Rate Mortgage loan that ‘popped’ up on you and you are struggling to put food on the table for your children and recently out of work husband, stress that in your letter. Do your best to make the letter as emotionally effective as possible.

2.Honesty is the Best Policy
Don’t make up a dire strait scenario that simply does not exist. The lender will be checking your recent financial records to see if your hardship letter matches up with the nuts and bolts of your financial situation. Dishonesty will not be rewarded with a successful loan modification and your hardship letter should reflect accurately your current situation.

3.Put on the Lender’s Shoes

A. If you were lending to an individual in your shoes, would you offer another chance to keep their home? Ask yourself: Will they be able to meet the new loan terms? Is their financial situation permanent, or only temporary? Do they have a serious desire to remain in their home?

B. You must also think like a lender along other critical lines. Would you say that an individual who makes payments on a boat, a 4-wheeler, and his ‘toy hauler’ is truly facing economic hardship? Along those same lines, do you think that a family who is sending their son or daughter to college or private school is truly facing economic hardship? (The answer to both of these questions are, NO!) The mortgage lender does not believe that they should foot the bill for your child’s education or your hobbies.

Ok, now that we have a better idea of how to write a powerful hardship letter, it is also important to know that a loan modification company that negotiates on your behalf will help you write an effective, heart felt, honest, ‘lender minded’ letter. A good loan modification company will sit down with you and help you write your economic hardship letter FREE OF CHARGE.

You should never have to pay an attorney or independent individual to write your hardship letter. A good Loan Modifications company understands the financial needs of today’s American homeowner and will have no problem formulating a loan modification hardship letter with you.

For loan modification hardship letter sample, visit: Sample Hardship Letters.

If you or someone you know will benefit from a mortgage loan modification, visit www.LoanModUS.com for legal help.