In the process of bargaining a home loan modification to your mortgage you will often first have to send a hardship letter. Your mortgage lender wants to know what led up to your current situation where it isn't possible to keep current on your payment, and how a modification could correct that problem, making their job easier.
Many reasons occur which will cause this problem for often hard working homeowners. The current economy has brought a lot of it such as layoffs, pay cuts, and less spending in general. Sometimes a death in the immediate family, loss of child support, fraud, and even self employment failures can make the situation (or at least make it worse) in addition. Not to mention those that become disabled and now have to lived on a fixed (and reduced) income. Life isn't always fair, though in the masses it's not only detrimental to ourselves, but also to the entire economy around us.
Recent government developments that resulted from oversight of the economy revealed a major loss in foreclosures. They also noted that there are a great deal too many of them. Among those experiencing these are everyday hard working families trying to survive and live the American Dream. As of right now, there are no complete regulations to force lenders to work harder to help the mortgager, so it's still a process that will vary and take some effort. The government is definitely offering incentives to cause home loan modifications though which make it more of an advantage to the lenders.
Creating your hardship letter will take some effort. You will of course want to start it with your loan number, address, and state the current status of the mortgage. Don't hesitate to briefly describe how you have kept up on it in the past, and by all means include current contact information (including day/night telephone numbers).
Following this you will want to detail the points that give a balanced explanation of why you are now having difficulty keeping up with your mortgage payments as well as how you might be able to get and stay current through modification of your mortgage payment amount. You will want to be sure to detail what changed that caused this situation preferably with a time line, though you do not want to make the letter more than 2 pages.
What the lender will be looking for is what they can realistically do to improve the payment for you, how sincere you are about working with them, and that you will be able to get and stay current into the future. A couple of their options to reduce the payment are to add time to the loan and adjust the rate (or principal).
Overall you don't want to waste your lenders time with complaining, or dreariness. You simply want them to understand your circumstances conveniently, and thank them for their time considering it. If they see that you will be able to pay with the reduced payment, you stand a good chance of continuing further in the application process for a home loan modification.
While the basics are pretty consistent for a home loan modification, each mortgage lender will have different requirements in the application process. The more complete your hardship letter is in documentation as to why you are experiencing a hardship and what it will take to correct this, the better chance you have of getting further into the process. In the long run, if you really want to keep your home, you will keep up on all replies and ask/answer questions to be sure the process moves along timely.