Hardship Letter to Chase for Mod.

[sheriann]

Hi *** and everyone,
I am in the process of writing up a hardship letter to Chase to explain my unfortunate set of circumstances, please help out the fellow Chase borrower by providing feedback based on what I have come up so far, much appreciate it.

To whom it may concern,fficeffice" />>>
We are writing to request that you consider a modification of my mortgage loan so that we can continue to make payments. We have tried to analyze my own situation objectively, and believe that a monthly mortgage payment of no more than $1350 would allow to us to keep current on our mortgage and our other necessary obligations. We are long-time homeowners and are committed to staying in our home if we can work out terms that are practical for both of us.>>
We are currently on a 5-year fixed interest only which is scheduled to be adjusted on June 2010. Although we have not been late or have missed any payments to date, my level of earning of has been making it extremely challenging financially on a monthly mortgage of $2240, property tax of $600/month and HOA $214/month. It’s not difficult to see that these three items alone has exceeded my gross income by 55%. If the mortgage would allow to be adjusted next July, the added principle would increase our monthly payment by 56% to $3946 even if the interest rate stays the same. For the past 2 years, we have attempted to refinance our home to obtain a more affordable mortgage, however the downturn of the housing market has devalued our home more than 20% making a 30 year fix refinancing nearly impossible. Furthermore, my father in law had a heart attack at the beginning of 2009, to efficiently care for his health we had him move in with us right after the bypass surgery. Since his federal sponsored Medicare insurance only covers a portion of his medical expense, we are responsible for his routine doctor’s visits and prescription medications on the portion that the insurance doesn’t cover which sum up to an additional $300 to $500 per month. The unexpected medical expense has further intensified an already stressful household budget.
We would appreciate the opportunity to work out a permanent loan modification where our mortgage payment won’t exceed 31% of gross income to make on time mortgage payments and meet the immediate needs for our additional housing expenses with a monthly principal and interest payment of $1350.>>
Sincerely,>>

[Moe Bedard]

Hi sheriann,


Welcome to the forum and thank you for joining.............

For the modification they would already have the information regarding the payment and the tax information so you would not need to include that in the hardship letter.............when you submit the financials, be sure to include the HOA statement........


The best way to set up a hardship letter..........

* First, describe the hardship and the circumstances that caused it
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home

[mountaingirl]

Re: your father-in-law's medical expenses, they will reduce dramatically if you enroll him in a Medicare Advantage Plan during open enrollment from 11/15/2008-12/31/2008. It will be effective in January and will cut back substantially on your out of pocket expenses. (monthly cost around $100/mo)