Hardship Letter

[TheMadGreek]

I researched the net, and found several example hardship letters. I typed my letter up, and wanted to see what everybody thinks?

BTW, this is the best site out there...thank you Loan Safe!

To Whom It May Concern:

I am writing to inform you of the financial hardship that my family and I are currently facing, and to the circumstances that brought us to this situation. I have tried everything possible to prevent becoming delinquent on my loan, and have exhausted all of my resources including a HELOC which I used to cover my monthly expenditures, and get through these difficult times. I also tried to refinance to lower my interest rate but am unable to do so as I owe more than the house is worth. In short, I am unable to meet my current monthly loan payment, and I would like for you to consider working with me to modify my loan.

Prior to this year, I faced 2 very difficult situations with no time to recuperate from either one before the downturn in the economy. First in August 2007, while having some work completed on my house, an accident occurred and it was burned down. I was displaced for nearly an entire year while dealing with reconstruction. Even though the insurance company settled the claim, many items were not covered and had to be paid out of pocket (in excess of $50,000). Not only was this an enormous cost to bear, several events occurred during this process that prevented me from working full time which greatly reduced my income.

About 2 months after I moved back into my house, my fiancé had his appendix ruptured. He was hospitalized for nearly a month, but was in recovery for 2 additional months. Insurance covered a majority of the bills, but there were still several bills left that had to be paid out of pocket ($5,000). In addition to the added expenses, my income was substantially reduced during these months while he was not able to work, and I was taking care of him.
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Lastly, I run my own business which has seen a drastic reduction due to the deteriorating economy. The business was reduced by 80% over the last 6 months, and the clients that I was able to retain have outstanding balances (more than $15,000). Unfortunately, they are unable to pay at the moment, and do not know when they will be able to pay.

Since the purchase of the house back in April 2004, I have never missed nor been late on a payment. I believe my situation is temporary, and I am taking action to help remedy the situation. I have reduced my monthly expenses to the bare minimum, and am looking for ways to cut back even more. After a few months of searching for a new job, my fiancé just found another position as an agent with New York Life. In addition to running my business on a part-time basis, my efforts have been focused on finding a full time position as well.

I know a loan modification will be very beneficial to my situation. As I mentioned, my fiancé already found a new position. He will be starting immediately, but unfortunately his income is reduced by at least half for the next year while he is in training. During this time, I cannot afford to pay the current monthly loan payment of $3,009.50. After reviewing our financial situation, I can afford to pay $1,800 a month for the next 1 year. After one year, when my fiancé’s income has been increased and I have a new position as well, we will be able to resume our current loan payment.

Thank you in advance for your time and consideration in this matter. If you have any questions please contact me at: xxx-xxx-xxxx


Sincerely and Respectfully,

[Moe Bedard]

Hi MadGreek,

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


Really Great Letter!


Who is your lender?

[TheMadGreek]

Thanks *** Damiano. I was wondering if I hit all the points or was just rambling on...thank you for the validation.

I am currently with Ditech/GMAC Mortgage.

I'll let you know what happens.

[rhondap]

Looks good.