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A Mortgage Loan Modification Hardship Letter is a written note which gives a detailed explanation as to what happened that kept a person from paying his or her mortgage. This is basically to prevent your property from repossession by a financial institution or your lender.

This letter narrates well the current situation of your life, things that have transpired in it in the recent past, the issues and circumstances that have kept you from meeting your financial goals.

However even as you compose this letter, bear in mind that this is an official letter, be straight to the point and only give finer details of what is necessary and would help your financier understand your situation best. One to two pages would be appropriate.

For you to be relevant; here are a few of the things or issues that most financial institutions would be looking for in a Mortgage Loan Modification Hardship Letter.

• Adjustable Rate Mortgage Reset: This is where the financier decides to increase the rate or the value of the amount that you were supposed to repay indefinitely. Though it’s not a common practice, most institutions are likely to initiate it.
• Failed Business or Job Loss: This can also be very detrimental to your repayment habit because your source of income is greatly interfered with. You cannot be able to earn what you used to earn and so a decrease in income rate.
• Damage to Property: When your property has been destroyed by let’s say floods, fire, lightning or any other calamities that you had not insured against, it will mean that you would have lost the property and this could affect greatly your mortgage repayment.
• Death of Partner: This could mean the death of your spouse or the other person that you acquired the mortgage loan with together, that is if you were in partnership. The passing away of all these can affect the way in which you used to pay back your mortgage loan negatively.
• To those in the Military, some duties may also bar you from being able to pay all your mortgages in time and at the required rates. If this is the reason then you need to state in the letter.

There may also be other reasons for failure to pay your mortgages in time and the required rates that you might want to include in the Mortgage Loan Modification Hardship Letter, be sure that you specify them therein clearly.