Loans, Debt & Credit - View Single Post

tryingtostay · 10-30-2008, 12:36 AM

okay, it's late, I'm so anxious about htis process starting... please advise if this makes sense, if I need to modify it, etc etc.
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We are writing this letter to turn to you for help to modify our loan to a payment we can manage easier, and one that is reducing our principle. We are trying to keep our house but we need you to work 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.

Every month it is a struggle to pay our increasing mortgage and our bills. We cannot afford to save for our child's college education nor build an emergency fund in case something happens. We drive thirteen year old cars which we can't afford to replace, and must continually pull out the credit card to repair.

We purchased the home with 20% down to avoid a PMI payment. We would not like to lose the home and lose our large investment in this property. We moved to this house because it was a safer neighborhood for our children and we could get our kids away from the increasing gang activity. We chose a pick a payment loan in 2006 because it was all we could afford. We were hesitant in choosing this type of loan, but were reassured by the broker that we could easily refinance at the one year mark because house values always increase. We knew in the one year time period Nick would receive a raise at his job. He did receive the raise, but, unfortunately, the housing market had crashed at that point and we were not able to refinance.

Since we bought our home, our income has increased every year. Unfortunately, it has not increased to the point where we can afford anything more than the lowest rate on our loan. We cannot even afford to pay the interest on our loan every month. ffice

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> >
Our house is valued around $182,000 based on comparable home sales. A similar model of our home is down the street is selling for that price (MLS # Ixxxxx). Two bigger houses on our street are selling for $182,000 and $189,000 (MLS#Txxxxxx, Txxxxxx). We currently owe around $370,000 on our loan and every month owe more. >>
> >
Without a loan modification our ARM payments will keep increasing until they skyrocket. We are struggling to make the payments now and as the loan increases, we will not be able to pay even the minimum payment. We know that a loan modification would benefit us to prevent us from heading to default and foreclosure. We would appreciate if you can work with us to help us get into a fixed rate payment that us paying interest and principal.

We truly hope that you will consider working with us so we can keep our home.
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too long? what shall be fixed? I'm hoping to send it off tomorrow and maybe get a call from AHMSI Fri or Mon... thanks for any ideas/suggestions!! I really do appreciate them all and look foward to reading them...

10-30-2008, 12:36 AM	#12 (permalink)
tryingtostay Senior Member Join Date: Aug 2008 Location: Menifee, CA Posts: 103 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	hardship letter help? okay, it's late, I'm so anxious about htis process starting... please advise if this makes sense, if I need to modify it, etc etc. ------ We are writing this letter to turn to you for help to modify our loan to a payment we can manage easier, and one that is reducing our principle. We are trying to keep our house but we need you to work 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. Every month it is a struggle to pay our increasing mortgage and our bills. We cannot afford to save for our child's college education nor build an emergency fund in case something happens. We drive thirteen year old cars which we can't afford to replace, and must continually pull out the credit card to repair. We purchased the home with 20% down to avoid a PMI payment. We would not like to lose the home and lose our large investment in this property. We moved to this house because it was a safer neighborhood for our children and we could get our kids away from the increasing gang activity. We chose a pick a payment loan in 2006 because it was all we could afford. We were hesitant in choosing this type of loan, but were reassured by the broker that we could easily refinance at the one year mark because house values always increase. We knew in the one year time period Nick would receive a raise at his job. He did receive the raise, but, unfortunately, the housing market had crashed at that point and we were not able to refinance. Since we bought our home, our income has increased every year. Unfortunately, it has not increased to the point where we can afford anything more than the lowest rate on our loan. We cannot even afford to pay the interest on our loan every month. fficeffice" />>> > > Our house is valued around $182,000 based on comparable home sales. A similar model of our home is down the street is selling for that price (MLS # Ixxxxx). Two bigger houses on our street are selling for $182,000 and $189,000 (MLS#Txxxxxx, Txxxxxx). We currently owe around $370,000 on our loan and every month owe more. >> > > Without a loan modification our ARM payments will keep increasing until they skyrocket. We are struggling to make the payments now and as the loan increases, we will not be able to pay even the minimum payment. We know that a loan modification would benefit us to prevent us from heading to default and foreclosure. We would appreciate if you can work with us to help us get into a fixed rate payment that us paying interest and principal. We truly hope that you will consider working with us so we can keep our home. -------------------- too long? what shall be fixed? I'm hoping to send it off tomorrow and maybe get a call from AHMSI Fri or Mon... thanks for any ideas/suggestions!! I really do appreciate them all and look foward to reading them...