[Moe Bedard]

Hello there. You asked for a harship letter and you shall receive!

Many people get bad deals when they try to get a loan modification or a forebearance agreement. They are usually so unrealistic that it just delays the pain. That's why it's good to have someone, a non-profit, attorney etc, review your paperwork and make sure it's a good deal.

Your debt income ratios need to be high. They need to show that if they don't fix your loan then you would default. You shouldn't have a lot of equity either. If you do, they will suggest you sell. Which makes no sense because real estate isn't selling. You need to show Chase that you cannot afford the current payment and if they modify it then you can afford the new mortgage. They keep the figure secret and there is really no rhyme or reason sometimes so I couldn't tell you an exact figure.

I hope this helps and best of luck to you!

(Example Harship Letter)

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.

The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.

Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.

We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.

Sincerely and Respectfully,

Mr. & Mrs. ___________________
Signature_____________________
Loan # ______________________
Address______________________
Phone________________________