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Sledge Hammer · 04-26-2009, 10:54 AM

First kudos to the founders for creating this wonderful website and also to all of the contributors.

Using this site and the great examples I have drafted my letter. Would appreciate your feedback on it to ensure I am covering every required item adequately.

Name: Sledgehammer
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)

To Whom It May Concern:

We are writing this letter to explain the extreme hardship it will be for us to pay our mortgage payment starting in June of this year.

Problem Statement
It has been a challenge to meet our financial obligations since June 2008 when my wife lost her job. At times we have been unable to meet all our monthly financial obligations. We have always paid our mortgage payment before all other financial obligations.

We have got behind on some of our credit card obligations. This has resulted in higher credit card interest rates and substantially higher minimum monthly payments. Throughout these difficult financial times we have continued to make our monthly mortgage payment. We have strived to pay on time each month and have been late some months. We have never been as many as 30 days late, always less. We are current with our mortgage payment and with your help plan to continue to keep our mortgage current.

Background
We refinanced our mortgage with USB in September 2006. The refinance changed the loan from an adjustable rate to a fixed rate of 9.8% resulting in a monthly payment of $4400.43. At that time my wife was working. She has not worked since June 2008. My daughter who lives with us and who graduated from college and joined the work force in June 2008 began paying a portion of the utilities to help offset the loss of my wife’s income. My daughter has bought a home and is moving out at the end of May this year. This will result in my income as the sole income for our household.

My current monthly income minus monthly expenses is -$206. We are also facing substantial additional housing expenses over the next several months estimated to be $21,500 as shown in our attached budget plan. Of this amount $14,500 is needed now as shown in our budget plan.

Without an adjustment to our principal and interest monthly payment we will start falling behind in our mortgage payment in June of this year. Also our home will begin to fall into a state of disrepair including the potential for water damage due to our home’s deteriorated roof condition.

We are unable to refinance due to the reduced value of our home.

Recommended Solution
We believe we can continue to make on time mortgage payments and meet the immediate needs for our additional housing expenses with a monthly principal and interest payment of $2965.

Please find attached all of the information you requested: our budget plan, 2 most recent paystubs, and 2008 W-2s.

We appreciate your time and consideration in resolving this situation. If you have any questions please contact us at xxx-xxx-xxxx.

Sincerely and Respectfully,

Borrower’s Signature
Date

04-26-2009, 10:54 AM	#58 (permalink)
Sledge Hammer Junior Member Join Date: Apr 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Examples of a Hardship Letter First kudos to the founders for creating this wonderful website and also to all of the contributors. Using this site and the great examples I have drafted my letter. Would appreciate your feedback on it to ensure I am covering every required item adequately. Name: Sledgehammer Address: (Your Address) Lender Name: (Your Lender) Loan #: (your Loan #) To Whom It May Concern: We are writing this letter to explain the extreme hardship it will be for us to pay our mortgage payment starting in June of this year. Problem Statement It has been a challenge to meet our financial obligations since June 2008 when my wife lost her job. At times we have been unable to meet all our monthly financial obligations. We have always paid our mortgage payment before all other financial obligations. We have got behind on some of our credit card obligations. This has resulted in higher credit card interest rates and substantially higher minimum monthly payments. Throughout these difficult financial times we have continued to make our monthly mortgage payment. We have strived to pay on time each month and have been late some months. We have never been as many as 30 days late, always less. We are current with our mortgage payment and with your help plan to continue to keep our mortgage current. Background We refinanced our mortgage with USB in September 2006. The refinance changed the loan from an adjustable rate to a fixed rate of 9.8% resulting in a monthly payment of $4400.43. At that time my wife was working. She has not worked since June 2008. My daughter who lives with us and who graduated from college and joined the work force in June 2008 began paying a portion of the utilities to help offset the loss of my wife’s income. My daughter has bought a home and is moving out at the end of May this year. This will result in my income as the sole income for our household. My current monthly income minus monthly expenses is -$206. We are also facing substantial additional housing expenses over the next several months estimated to be $21,500 as shown in our attached budget plan. Of this amount $14,500 is needed now as shown in our budget plan. Without an adjustment to our principal and interest monthly payment we will start falling behind in our mortgage payment in June of this year. Also our home will begin to fall into a state of disrepair including the potential for water damage due to our home’s deteriorated roof condition. We are unable to refinance due to the reduced value of our home. Recommended Solution We believe we can continue to make on time mortgage payments and meet the immediate needs for our additional housing expenses with a monthly principal and interest payment of $2965. Please find attached all of the information you requested: our budget plan, 2 most recent paystubs, and 2008 W-2s. We appreciate your time and consideration in resolving this situation. If you have any questions please contact us at xxx-xxx-xxxx. Sincerely and Respectfully, Borrower’s Signature Date