hardship loan modification, financial hardship letterIf you have run into a big financial roadblock and are having trouble making your mortgage payment, you should consider talking to your lender and seeing if they can't do a hardship loan modification for you to save your home. They can't lower your principal, but they can lower your interest rate, and that could make a big difference in the amount you are paying for your house payment. If you can stay in your home, you are so much better off than having to move while you wait out this rough economy.

A financial hardship letter for your bank should include the reasons why you are having trouble making your payments. You might have lost your job or had a cut in wages and there is simply not enough money to go around. If you spell out the reasons in your financial hardship letter, your bank may be able to help you out. It takes about a month or more for the bank to restructure your loan, but if you want to avoid foreclosure, this is about the best way to do it. The banks have learned that it's far better to do loan modifications than to foreclose because it costs them less to lower your payments. So if you're on a bumpy road financially, don't hesitate to contact your lender to see if they will consider a hardship loan modification for you.