What should be in a separation letter to my bank for modifying my mortgage?
Full Question:
Answer:
A mortgage modification or re-finance is a common procedure following a divorce or legal separation. It also is common when there is a hardship on the part of the borrower.
If you did not have a formal legal divorce or separation, the mortgage holder will require you to prove to them that the other borrower or spouse who had a homestead right in the property will not be forfeiting his rights if you re-finance or modify the original mortgage.
This letter is not required to be in any particular form, just a written explanation of the circumstances involved and a statement that your spouse has abandoned the property.
The bank should be able to outline for you what things they are looking for in the letter and whether or not it needs to be signed under oath.
While your letter is important, your mortgage company may also need some other items to prove that you are truly suffering from a hardship. They ask for things like paystubs, bank statments, W-2 forms, or a detailed asset/debt statment.
By including these items, your mortgage company will be able to gauge your ability or disability to pay your mortgage under the current terms. However, your letter is essential because it explains the hardship you’re facing. Continue reading to find out some of the hardships that could qualify you for mortgage modification.