Loan Modification Please Review any advice available greatly appreciated!!

[Yannu]

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us our mortgage to become an extreme financial hardship.
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 first and foremost my husband Donofrio lost his job in December of 2009. Donofrio looked for employment elsewhere, finding a job paying a small fraction of his previous place of employment, only to be laid off and was forced eventually to draw unemployment which he currently still receives. This was only on top of the unfortunate event of my inability to find a job as a XXXX after earning a Graduate Degree due to overwhelming competition for jobs due to the troubled economy. That of course does not change the fact that I am still required to pay back the student loan that paid for my graduate education, the student loan that we inevitably deferred payment on due to our now high mortgage payment relative to our income as well as my husband’s student loans we deferred. Additionally, last year we applied for a mortgage loan refinance only to be rejected after an inaccurate assessment of our home; results indicated that our home value had dropped over $30,000 although the square footage was short by { assessment square footage shortage}.
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 XXXX. 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.

We feel that a loan modification would benefit us both, both us as the borrowers and you as the lender. 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,

[Evan Bedard]

Welcome and thank you for joining the community.

Your hardship letter looks good, it is not too long and it gets straight to the point. One problem you are going to encounter here is the fact that your husband is currently unemployed. It is very difficult to get any kind of assistance if you are unemployed because they typically do not count it as income unless you are receiving benefits for at least nine months from the time you submit your application..

However, a new program has recently came out that is made specifically for those who are collecting unemployment. It is called the Home Affordable Unemployment Program and you will find a link below that explains more details about the program. with this program you will be offered a forbearance period for 3-6 months that is offered to give you time to find and secure new employment. You must be able to secure a new job during this period to qualify for a permanent loan modification.

https://www.hmpadmin.com/portal/docs...eservicers.pdf

If you feel you need assistance negotiating with your lender you can try a nonprofit housing counselor like HOPE or NACA. Please keep in mind that these organizations are not mortgage cure alls or a one stop shop to leave your problems at. You'll have to keep on top of this the whole time if you truly wanna save your home.

You definitely will want stick around this forum and feel free to join other discussions. Most everyone here is a homeowner just like you and going through the same things.

[sdeniseed]

I know a lot of people don't have success with NACA, but I have to praise them. Got my papers last night. NACA submitted papers in March, I went to AC in May and met with the investor (Freddie MAC) and the FED EX was waiting with my trial docs last night when I got in. I know it's not over yet, but I wanted to fall on my knees and cry. Even though it only took 3 months, the fight felt like years.

[Evan Bedard]

I know a lot of people don't have success with NACA, but I have to praise them. Got my papers last night. NACA submitted papers in March, I went to AC in May and met with the investor (Freddie MAC) and the FED EX was waiting with my trial docs last night when I got in. I know it's not over yet, but I wanted to fall on my knees and cry. Even though it only took 3 months, the fight felt like years.

You are very lucky to receive a mod in such a short amount of time. Most people are in this process for about a year before receiving any kind of answer from their lender. It is nice to see that NACA got your mortgage modified in such a short amount of time. Would you mind sharing the details of your agreement?

[sdeniseed]

I know how lucky I am. I've been reading the posts on this site. I think it's was luck, the fact that Freddie is my investor along with timing with the new initiatives put in place in April.

The letter from Chase (yes Chase) is a follows:

TPP - 1580.33 for Aug, Sept and Oct.

My original payment is 2370 per month. No details about the percentage rate now or when and if (I still can't believe it) it becomes permanent.

[Evan Bedard]

Oh nice looks like you are now officially on the trial period. Make sure to make all three payments on time and also be prepared to send in updated financials in Oct so they can continue review for a permanent modification.

Good luck and please keep us posted on your progress!

[sdeniseed]

Thanks Evan,

I'll defintely keep you posted. I plan to send updated financials and paystubs each month to both Chase and NACA.

One quick question. I've read that people sometimes have problems when they pay to early. Do you think it's okay to send the payment overnight on say the 25th of each month? I don't want to mess up in anyway.

Thanks.