On a lighter note of the justification of loss the following reasons were actually stated on the ‘Hardship Letter’. Such a note is to be submitted to the money lender in order to qualify for a second loan modification. Further the points discussed in the write up strongly support the reasons that why the lender needs to get an individual a better and a second much revised loan modification.Some of the reasons are provided below:
- One can put forward that the first loan modification was done at 3% and the interest rate is fairly above the rates which have been advertised.
- Misconception regarding the payment of modification for 2 years and then taking a leap for 6 months was fine before taking a new modification.
- Renting your flat in the blood relation for example your son or daughter. From whom you cannot claim rentals.
- No clarity over the equity issues as the office told to withdraw say 20 lakhs but didn’t gave an insight about running out of equity.
- The affordability factor can also support in making the bank realize the potential to pay the individual’s mortgage.
- Paying the mortgage during tough economic condition is also one of the reasons. The lenders and the government cannot forge the same.
- Reasons like daughter’s marriage which requires a lot of liquid cash to be spend in the marriage arrangements can also be a reason to not be able to pay the mortgage while saving for the particular affair.
- Another reason could be the uncertain employment of the tenants. This situation could also be harder in paying the rent to the owner who relies on the rentals to pay back the mortgage.
- Quitting the job to be self-employed but also fearing the fact of not being hired by any firm.
- Another reason can be quitting the job to go to school and then realizing that the tuitions are really expensive.