Hardship Letter. Please let me know if OK.

[cjbory]

To whom it Might Concern.

At the beginning of June, my employer cut all my overtime due to the current state of the economy. Although I am grateful that I still have a job my employer actions resulted on a 10% ($400) reduction on my gross monthly salary. Although I have a fixed rate loan at 6.25 % my current mortgage payment is well over 40% of our combine gross income of $6732 making it impossible to continue to pay our $2,846 including escrow and at the same time keeping up with our other financial responsibilities. Around the same time, this was happening I lost my tenant on a apartment unit we have, which is also owned by Bank of America and which it took us 3 months to find a replasemment. During this period, we managed to continue to be current on the mortgage payment by taking money out of our savings in order keep that mortgage current depleting our savings to about $5,500. I hope you understand that with only so little savings, a high mortgage payment plus all the other financial responsibilities and some new medical bills coming our way due to our second child birth on Sep 6th it is just impossible for us to continue making our mortgage payments. fficeffice" />>>
After much consideration and reviewing the terms of the new Make Home Affordable plan your company is part of, we come to you asking to consider our loan for a modification. We feel that if you can modify the interest rate to around 3% we can achieve a 31% mortgage to income ratio as per MHA guidelines. This modification will ensure our ability to make our mortgage payments on time like it has been for the past two years. In addition, we would like you to consider placing a 90-day hold on our credit report in order to work thinks out with out affecting our good credit rating. We would appreciate if you can work with us to make this happen, as our number one priority is keeping our home.

[Evan Bedard]

Great hardship letter cjbory!

[hope67]

cjbory, I think it is a great letter, however, I think it's best not to mention the interest rate that will achieve the 31%, the reason being sometimes they go as low as 2% using the remaining term of your loan. For example, if your loan has a 25 year remaining term, they amortize your loan modification based on 25 years using whatever interest that would achieve a payment that would be 31% of your gross income. I'm not sure what formula you used to arrive to the 3% figure, have you used the remaining term of the loan or a total of 30 years term?

Also, I think losing a tenant is considered a temporary hardship, so IMO, you don't need to mention it, at least at this point.

[cjbory]

Thanks so much guys..

I used a 30 year term on the remaining 333k balance of the loan plus tax and insurance as I escrow that now. But I think ill take your advice and take that part out and leave it to them.