A loan modification hardship letter is an integral part of the application process when you are seeking to obtain a reworked mortgage. If you are trying to save your home from foreclosure, there is a lot riding on that one letter. We will discuss some very important tips on How NOT to Write Your Loan Modification Hardship Letter.

Click here to learn how to do a loan modification.

The first thing you should not do is write a long, sappy letter. You should not go into minute detail of every pitiful thing you can dredge up about the last few years of your life. This letter should not be longer than 1 1/2 pages at the most. Loss Mitigation Specialist are overwhelmed with applications for consideration, and they do not have any extra time to read all of your emotional ramblings. Keep it crisp, concise, and to the point.

And, while we are talking about “sappy”letters, we should mention that this hardship letter is not a contest for the most pitiful situation. Very clearly recount what happened that got you into this situation, and how you had no control over the events. This is financial hardship, the loss of income or an increase in expenses through no fault of your own.

Just the facts, please, are all that are necessary. They should be compiled in a clear manner to help the lender understand how and why you need a loan modification. Your loan modification hardship letter is the window that the lender looks through to see your financial situation.

For must know facts about how you can get approved for a loan modification, visit my blog at http://LoanModificationsHelp.net/ to get help today.

Ashlee Ashton is a loan modification expert. I enjoy helping people stay in their home.
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Many families have been ruined and are unable to even meet their day to day expenses, thanks to the global financial crisis that shook the world from the first quarter of 2008. Quite a number among them had got their abode through loans and had mortgaged their property for the same. Prior to the financial crisis, many of these people faced no problems in paying the money due on the mortgage at the scheduled time. Now that they are unable to do so, they are faced with foreclosure.

The numbers of foreclosures are increasing by the day and it is estimated that presently there are 9 million people and more who are in foreclosure. There is a bit of good news for quite a few of them. The documents pertaining to the loan were not correct and on some occasions they were even forged has been the observation. In such circumstances these homeowners have a bright chance of getting their foreclosures waived. Knowing these things is a tough task for the common person.

Only those who have an in depth knowledge about property laws and loan regulations can undertake it. These professionals methodically scrutinize the loan papers and check the same for any abnormalities. There are some laws pertaining to mortgages that must be adhered to. If an omission or error is made by the agents of the lender or the lender themselves then it is a violation of the law. It is here where the experts take over.

After checking the loan audits they observe any violations in the loan paper, they use the same to initiate litigation with the lender. In such circumstances the lender will be held accountable for laws violated by them. Once this audit has been completed, and the loan violations identified, the organization that took up such task will help you through US legal advisors to find an attorney who can assist you to follow up the case with any requisite legal action required against the lender. It is high time you took action and saved yourself from the impending threat of foreclosure. Act now and make sure that you file a case against your lender before they terminate you of your rights through foreclosure and take over your property.

Get some more info on US Loan Auditors and Finding and fighting Predatory Lending.
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Where you told that you were denied for the HAMP Loan Modification because you failed the NPV calculator and you are wondering what that means?

Most borrower have no idea what an NPV calculator is and don’t have a clue why they failed it.

Here is the Definition of NPV as it relates to Home Affordable Modification Program:

The “NPV Test” (NPV is “net present value”) is a formula used to determine your eligibility for a loan modification under the HAMP Program. The purpose running an NPV calculation test is to decide if the investor of your mortgage is in a better profit position by approving you for a modification (basically which choice gets more money to their bottom line) or if they would have a higher profit margin by allowing the property to foreclose. This formula takes many different factors such as current value, foreclosure costs, resale time and compares this with payments on the reduced rates, how much principal they would have to defer interest free to make you qualify under 31% of your gross (pretax) income, after the other “waterfall process” steps the HAMP underwriting guideline require in order to lower your payment were first calculated, along with the risk in possible repeat default, and many other figures that are called values. In other words, it is the comparison of two formulas with multiple factors, that are then compared to see which is greater in profit to the investor of your loan. Most times the investor is not the same as your servicer.  It may be Fannie Mae or Freddie Mac, other investors are participating in the Home Affordable Modification Program HAMP.

If the borrower is not approved for a HAMP modification because the transaction failed the NPV calculations, then the servicer must, explain what the NPV means tell you the factors used to make the NPV decision and advise you that you may request the values used in making the calculations along with the date the process was completed within 30 days of the notice of denial. and dates. The reason they have to provide this information to you is to give you the opportunity to make any necessary corrections to the values they used as they make or break your ability to be considered eligible for the Home Affordable Modification Program HAMP.

You can request the specific NPV values verbally or by writing to the servicer within 30 calendar days from the notice date and they must answer your request within 10 days.

If you request the NPV values and you have a foreclosure sale pending the servicer must not complete the foreclosure sale until 30 days after they deliver those values to you to give you time to correct the inaccurate values. If there are any.

Once the evidence that the NPV values used were inaccurate, the servicer has the burden to make the necessary verifications to see if the corrections are material to the outcome of the NPV. 
Some values don’t affect the outcome and do not warrant a change from the original NPV. If you find inaccurate values in the NPV calculations and you follow the protocol for advising the lender then your servicer must reconcile the inaccuracies prior to proceeding with any foreclosure sale.

As always the best way to win at the loan modification game is to learn everything you can about the process so you can be empowered and successful with your loan modification and saving your home.

For Free Loan Modification Assistance and your Free Special Report “Dirty Little Loan Modification Secrets, You Must Know” sign up today at http://www.askaloanmodguru.com

Consumer Advocate/Expert Trainer for Mindset & Empowerment to Successfully Modify Mortgages & SAVE Homes/Loan Mod Guru.
Proven Record of Achievement: Modified over 130+ loans including Sale Reversals. My expertise can empower others during the housing crisis w/insider tips, process, & knowledge. My Goal is to help you succeed at saving your home.

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