Examples of a Hardship Letter

[keyluvs2travel]

Thanks for the footprint! I know how to write the letter. I spoke to my servicer and he suggested I go to the "makinghouseaffordable" website and answer the following questions to see if I qualify. He stated if I did qualify then I needed to write a letter stating why I felt I was eligible for this plan and send the applicable docs. Is this the same as the hardship letter?

[Maurice Bedard]

yep......

[NYC_Lover]

I posted my hardship letter in this thread today for input but my post is missing. How did that happen? Did I do something wrong?

[Maurice Bedard]

It went into a thread of your own, so that we can follow your story from start to success........
here it is
GMAC MHA Modification

[NYC_Lover]

My very own thread! And with all my posts condensed. Oh, my!

Um, how did I miss it?

Thank you!

[MPDano]

Great Thread!

[MPDano]

These are great examples!

[wach-ntmare]

This is one of the hardest documents I've ever had to write, and the thought that it won't get the desired result makes my stomach turn. Please read below and lend any assistance and/or advice you can.

I write you in an attempt to explain the events that have transpired causing me to become delinquent on my current mortgage.
I was a participant in the 12 month fixed rate loan modification program offered by Wachovia from July 2007 – 2008. During this time I was gainfully employed and benefited from a 6.5% locked rate on my loan. When the product was about to expire I contacted the retail loan department to refinance of my home. The refinance process dragged on for several months with appraisal after appraisal, and adjuster after adjuster with no loan commitment or closing date.
Then in February of 2009 I lost my job which was our primary household income. Our property insurance was due, and I was unable to keep my account current. I have since been approved for unemployment benefits and able to make one of the delinquent payments. My unemployment benefits total $275 per week, and I am vigorously seeking new employment. My wife has started working additional hours to help make ends meet, but our current total household income is approximately $2,250 per month and we are now faced with the our 2008 property taxes and flood insurance payments becoming due within the next month.
We have every intention of meeting our obligation, and are confident that we will be able to do so. However, we have currently exhausted all of our resources and our current income does not allow us to pay our property taxes, and flood insurance, while keeping our account current. It is our hope that you will work with us to prevent any delinquencies while we bring our property taxes and flood insurance current and modifying our loan to create an escrow account and lower our monthly payments. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.fficeffice" />>>

[Maurice Bedard]

Hi wach-ntmare,


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

You may want to contact Wachovia to see if you are able to qualify for the new Making Home Affordable modification program..........the details and eligibility can be found here in this link.......


https://www.wachovia.com/foundation/...00627d6fa2RCRD

[wach-ntmare]

Thanks for the link. I will be sure to ask them about that program specifically the next time I speak with the loan counseling department. Did you have any thoughts on my hardship letter? Every day that passes, I dread not sending it, but this is a one shot deal so I want to make sure it's right.

[Maurice Bedard]

The letter explains the hardship in detail.........just make sure that you also cover.....


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

* 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.

[indpndntone]

I was wondering if someone would give me advice on my hardship letter? Let me know if I am missing anything or need to change some wording. Thank you in advance.

To Whom It May Concern:

I am writing this letter to explain our unfortunate set of circumstances that is going to cause us to become delinquent on our mortgage is the upcoming months. The first is that I have had my hours and pay reduced by 20% for an indefinite amount of time at my job with the possibility of full job loss this summer if the economy does not improve. The second is my daughter is going to be having surgery this summer and we have a $ 4,000.00 deductable PPO. After we reach the $ 4,000.00 we will still have to pay 20% of the remaining bill. This is going to be a significant amount as her last surgery was about $ 4,500.00 out of pocket expense for us. With our current bills and two small children who require daycare for us to work, we are going to fall behind on our payments in the near future as we have depleted our savings to keep current.

We currently have a 30 year fixed loan with a 10 year interest only option (impound) loan. We currently make the interest only payment (including impound) and pay an additional $ 100.00 towards principal. That means our payment is $ 2765.35 a month. Our actual payment should be $ 3,150.00 per month but we cannot afford that because we also carry a second mortgage on the house which is an additional $ 322.47 per month. Our income does not suffice. We desperately want to keep our family in our house as we love the neighborhood and school system that we are in. We believe that a loan modification will do just that. We have not yet become delinquent and want to preserve our credit and good standing with you. Please consider us a candidate for a loan modification.

[Maurice Bedard]

Make sure you add the same information that I posted above for another member...............you described the hardship in detail..........but have not included...........


* 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.

[indpndntone]

I have added to the letter. Please look it over now and see if I still need to expand on any topic. Thank you in advance again for your assistance.

To Whom It May Concern:

fficeffice" />I am writing this letter to explain our unfortunate set of circumstances that is going to cause us to become delinquent on our mortgage is the upcoming months. The first is that I have had my hours and pay reduced by 20% for an indefinite amount of time at my job with the possibility of full job loss this summer if the economy does not improve. The second is my daughter is going to be having surgery this summer and we have a $ 4,000.00 deductable PPO. After we reach the $ 4,000.00 we will still have to pay 20% of the remaining bill. This is going to be a significant amount as her last surgery was about $ 4,500.00 out of pocket expense for us. With our current bills and two small children who require daycare for us to work, we are going to fall behind on our payments in the near future as we have depleted our savings to keep current.

We currently have a 30 year fixed loan with a 10 year interest only option (impound) loan. We currently make the interest only payment (including impound) and pay an additional $ 100.00 towards principal. That means our payment is $ 2765.35 a month. Our actual payment should be $ 3,147.91 per month but we cannot afford that because we also carry a second mortgage on the house which is an additional $ 322.47 per month. Our income does not suffice. We have been diligently sticking to a monthly budget of only using cash and have used our tax refund to pay off our credit card and assist in paying down our other bills. We have even cut out pay television to cut expenses. I am currently looking for a second job to assist with paying our bills but have been unsuccessful due to the widespread unemployment rate and so many people applying for the same position. >>
> >
We have not been late or have missed any payments to date and want to keep it that way. We desperately want to keep our family in our house as we love the neighborhood and school system that we are in. We believe that a loan modification will do just that. We want to preserve our credit and good standing with you and just need a second chance to do that. Please consider us a candidate for a loan modification.>>

[Maurice Bedard]

much better...........

[wcorsar]

Hello, I'm not sure if this is in the correct forum. If not please let me know where would be a more appropriate place to post.

My situation is a little different from what I am seeing here in that I am attempting to be proactive prior to my incurring any late payments. I have recently been laid off due to my company sending work overseas rather then having Americans perform the work. (That a whole other topic for a different board)

In any event, given the current economic climate and the possible difficulty in finding another job real soon, I'm looking into doing a loan modification. I currently have a 15 year loan (about 6 years into it) with Wells Fargo at 5.125% fixed. The problem is that this particular payment is close to $1,400 a month with insurance and taxes included. Obviously, I would need to make close to what I had been in order to be able to handle this payment. That may not be possible in the near future. So, I am looking to modify it to a 30 or 40 year loan so I can lower the payments. This would give me a great deal of flexibility in the jobs I would be able to take in the near future, and thus hold onto my home.

I spoke with Wells Fargo and they are sending me the forms to fill out and want me to send a hardship letter as well. As you can see, I'm not in a hardship YET. However, I would rather avoid the hardship altogether bying taking a proactive approach. Can you give me some advice on how best to word this hardship letter to ensure I can accomplish what I am trying to do?

Thank You! (oh...and this is a very useful site!)

[Maurice Bedard]

wcorsar,



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

Being laid off would be the hardship..............

These are what most lenders consider to be generally acceptable hardships....

1. Loss of job or reduction in income
2. Death of the homeowner, spouse or family member
3. Illness of homeowner or family member
4. Divorce or separation
5. Forced job relocation by employer
6. Adjustable rate reset-payment shock



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.

[Sledge Hammer]

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

[Maurice Bedard]

Sledge Hammer,

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



the servicer, if participating in the Making Home Affordable modification program, has steps and guidelines that they will be following for the modification process............so the recommended solution would be the outcome of what they arrive at after performing the NPV test and verifying income and expenses...........to try to get the payment on the first lien, including Principal, Interest, Taxes, and Insurance, down to the target of 31% of monthly gross income.


From the program guidelines:

Front-End DTI is the ratio of PITIA to Monthly Gross Income. PITIA is defined as principal, interest, taxes, insurance (including homeowners insurance and hazard and flood insurance) and homeowners association and/or condominium fees. Mortgage insurance premiums are excluded from the PITIA calculation.

The Back-End DTI is the ratio of the borrower’s total monthly debt payments (such as Front-End PITIA, any mortgage insurance premiums, payments on all installment debts, monthly payments on all junior liens, alimony, car lease payments, aggregate negative net rental income from all investment properties owned, and monthly mortgage payments for second homes) to the borrower’s Monthly Gross Income. The servicer must validate monthly installment, revolving debt and secondary mortgage debt by pulling a credit report for each borrower or a joint report for a married couple. The servicer must also consider information obtained from the borrower orally or in writing concerning incremental monthly obligations.

Borrowers who otherwise qualify for a modification under this program, but who would have a post-modification Back-End DTI greater than or equal to 55%, will be provided with a letter stating that they are required to work with a HUD-approved counselor and the modification will not take effect until they provide a signed statement indicating that they will obtain counseling.


The borrower’s Monthly Gross Income is the amount before any payroll deductions includes wages and salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payment, including Social Security received by adults on behalf of minors or by minors intended for their own support, annuities, insurance polices, retirement funds, pensions, disability or death benefits, unemployment benefits, rental income and other income.
Monthly net income can be used for preliminary screening and qualification. If used, the servicer will need to multiply net income by 1.25 to get to an estimate of Monthly Gross Income.



In summary, participating servicers will (in order):

• Determine that a loan meets the minimum eligibility criteria (owner occupied, originated before January 1, 2009, UPB equal to or less than $729,750). If yes:

• Obtain sufficient income information to determine if the borrower has a front-end debt-to-income (DTI) ratio of 31% or greater (verbal income may be accepted for initial evaluation subject to verification prior to final approval). If yes:

• Capitalize (add to the loan amount) accrued interest, past due taxes and insurance, delinquency charges paid to third parties (e.g., for inspecting the property), and escrow advances by the servicer – but not late fees or other default fees charged by the servicer;

• Determine how much of an interest rate reduction is required to get the borrower's mortgage payment to 31% DTI, and if the DTI still exceeds 31% at the rate floor of 2%, modify the loan in other respects specified in the Guidelines;

• Apply a Net Present Value (NPV) test to determine if modification (including the incentive payments) provides the investor with a better financial outcome than foreclosure. If yes:

• Put the borrower on a trial modification at the new interest rate and payment for three months.

• If the borrower is current at the end of the trial modification period, the servicer will execute a modification agreement that includes escrows for taxes and insurance even if the prior loan was not escrowed.

[Sledge Hammer]

Cat Damiano - thanks for the prompt reply.

We have spoken to US Bank reps 3 times. Each time they have told us that US Bank is not participating in any government loan modification program.

They said that they judge a loan is reasonable if the PITI = 40%-45% of net income. Sounds pretty high to me. I am at 53%.

I am at 36.6% front end DTI and 41.3% back end DTI using gross monthly income.

What is really scary is that it takes 2 of my paychecks to make my PITI and according to the above DTI #s this is "not so bad".

Our home value is such that we can not refinance. Do we have other options to reduce our monthly PITI?

Thanks again for this great website and your prompt reply to my initial post.

[Maurice Bedard]

Whoever you spoke with is not giving you accurate information......because according to their website.............US Bank is participating in the program...............you may have been speaking with a different dept.........

To speak with a loan specialist and determine your eligibility and to discuss your options under the Making Home Affordable Program, please call 866-932-0462.



Homeowner Affordability & Stability Plan

The U.S. Treasury Department recently announced details of the Making Home Affordable program which allows eligible borrowers to refinance or modify their mortgage loans, resulting in more affordable payments. U.S. Bank Home Mortgage is participating in the program and fully supports efforts to help families to lower monthly mortgage payments and / or to avoid foreclosure and remain in their homes.


Here is the link right from their website..........

Making Home Affordable - Loan Modification and Refinance

[JenMBS]

Cat,

Do you know if Flagstar Bank is participating? When I first called to tell then about my hardship they said they were and that my loan was Freddie Mac backed. I haven't head from them yet and I do not see any info on their website about MHA.

Thanks

[Maurice Bedard]

From what I understand............if your loan is FreddieMac, then the servicer would have to see if you are eligible following the guidelines that FreddieMac has established for the Making Home Affordable modificaiton program.

[JenMBS]

Oh... I forgot about that. Sorry to bug you.

[beelzebub]

Hi All,

I'm having a little trouble formulating our hardship letter to Bank of America for the "Home Affordable" modification program sponsored by the federal government. Our income was reduced from $90k/yr to $60k last year when my wife went through a very difficult pregnancy and had to stop her home-based child-care service business. Now that the baby has been born, she's been staying home taking care of our two children.

Restarting her childcare service has not been an option for us because

• the cost of paying someone to take are of our two children is very high;
• our house is not suitable for running a childcare (my wife used to run the business out of her father's house, who has since moved away);
• it's uncertain she can build up a clientele as before; and
• we don't want a stranger taking care of our newborn.

Does anyone have any experience with hardship letters based on pregnancy or new children? Will the B of A analyst reject our application on the basis that my wife should simply go back to work? How do we persuasively make our case? We're hoping to have our mortgage payments go down from 41% of our income to 31% of our gross income.

Thanks.

[rockfish]

How is this for my hardship letter? I just modified the example somewhat. Does it need more?

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. 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 on our mortgage, is that my wife was laid off in Sept. 08 after our first child was born. She was helping contribute to the mortgages that will eventually adjust to a much higher rate. I became the sole provider and struggled to make the current payments. 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 WAMU. 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.

Our situation has gotten better now because my wife after 8 months of no employment, has now started a new job, but not making nearly what she did. Therefore, we feel that a loan modification would benefit us both. 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,

[beelzebub]

... my wife after 8 months of no employment, has now started a new job, but not making nearly what she did.

I'm not qualified to give you any advice but I think being more concrete about the dollar amounts would make a stronger case. E.g., "My wife used to make $50k/year but in her new job she makes only $25k." Otherwise the reader can't really tell what "not making nearly what she did" really means. Did she make $50k but now is making $45k?

My two cents worth,

-BLZB

[rockfish]

Does this look better?

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. 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 on our mortgage, is that my wife was laid off in September 2008 after our first child was born. At the time she was making $60k/year with a firm. She was helping contribute to the mortgages that will eventually adjust to a much higher rate. I became the sole provider and struggled to make the current payments. 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 WAMU. 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.

Our situation has gotten better now because my wife after 8 months of no employment, has now started working from home making $40k/year. This will also help to cut costs on childcare while working from home. We are responsible homeowners who just needs a second chance because we really want to save our home. Therefore, we feel that a loan modification would benefit us both. 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,

[soccer10]

To Whom It May Concern:

We are writing this letter to ask for your assistance regarding our loan with you and the need for a loan modification on our current property.

When we bought this home, we had great expectations and felt that were living within our means. My wife was a manager at Nordstrom and I was an engineer with L-3 communications. Our debt-to-income ratio was right about 30%. After we had our 1st child on 09/08/07 we thought it would be best for Megan to stay home with Isabella, while I continued my steady employment. With the economy taking a sudden downturn L-3 began to lose a few contracts and soon my position was eliminated. We searched for several months for a new job in the San Diego area and unfortunately we had no choice but to take a position out of the area, or risk being without work for much longer. To complicate matters further Megan had some medical complications that further reduced our savings.

After losing my job, we were fortunate enough to have some money in savings. However that money was quickly running out and we knew we would soon have to stop making payments. My new job is located 75 miles from our current residence and the current plan is for me to commute a couple days a week, and to stay in the area the rest of the week. With the commute and now only having paycheck we are now at little over 40% debt-to-income ratio. Consequently this puts a very large strain on the family, and our marriage. With the cost of living so high we are unable to save in case an emergency should arise again. We try to live frugally by eliminating monthly expenses such as cable TV and a land line.

When President Obama announced the loan modification program we knew this was our chance to get back in a firm financial position – but we need your help to make it happen! If there is anything you can do to help us modify this loan as soon as possible, my wife and I would be eternally grateful.

Thank you for your help and understanding in this very stressful time. Please call us if you need any further information.

[Maurice Bedard]

rockfish and soccer,


The letters look good............short and to the point.



Good Luck with the mods!!

[mamona]

Hifficeffice" />>>
I am new in the forum and I am so glad I found it, the information here is great (a little bit overwhelming sometimes, but great).>>
We are just in the process of start our modification package, but we are not sure if our situation is cover in the hardship examples. I was accepted to medical school and I will start on August; due to the demanding work at school I will not able to work anymore, so our income will be reduce by half. We are not late in our mortgage yet, but after August we don’t know what will happen. I tried to get some non-certified student loans to cover the part of my income, but due to situation there is almost zero banks doing this type of loans and wells fargo just denied us for a 15000 loan. So back to my question is this situation something that the mortgage company will understand. I mean, I worked very hard to get into medical school and I am not working not because I am lazy but because I really have to stop working.>>
> >
Thanks for any input

[Maurice Bedard]

mamona,


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


Which lender are you working with and have you contacted them yet to begin the modification process and see if you meet the eligibility requirements?

[mamona]

mamona,


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


Which lender are you working with and have you contacted them yet to begin the modification process and see if you meet the eligibility requirements?

Thanks for your quick response...
Our 1st mortage is with PHH my husband called them and I don't know exactly what they ask him, but they said they will send a modification package for us. My other question is do we need to contact our 2nd mortgage (country wide - BofA) or we need to wait until our first modification is done and approved??

[Maurice Bedard]

If they are going to work with you on the MHA program than you would need to have the modification on the first in place using the MHA modification plan....................if PHH isn't following the guidelines for the Making Home Affordable modification program than you could contact BofA at the same time............although some seconds will wait until the first is modified because a requirement of a modification is that the second lien re-subordinate.

[SanJoseGal]

Mortgage info:
1st with WF 540k 5/1 arm Interest only
2nd with Chase 125k 15 year fixed 7.5%

Here is my first draft letter of hardship. Any comments would be appreciated! : )

I am writing this letter to explain my unfortunate set of circumstances that will soon cause us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have started to fall short and would like you to consider working with us to modify our loan. To date we have made all of our mortgage payments on time and will continue to make all payments in full and on time. We are trying to be proactive because we want to preserve our good credit rating as well as our most important asset, our home.

The main reason that is causing the impeding delinquency is a loss of job and reduced bonuses. My wife was laid off on October 31, 2008. She is currently collecting unemployment benefits, which is only 38% of her original salary. I work in the high tech industry in sales; with the economic climate down we have been also booking less sales in turn causing me to make 20% of my anticipated commission. With those two hardships lined up at the same time we have a drastic decrease in cash flow it has got to the point where we are struggle to make ends meet to pay our mortgage.

My wife is avidly seeking and applying for jobs daily. The Silicon Valley has a very competitive job market and with the 11% unemployment rate here in California it is making it harder to get a job.

We have not been late or have missed any payments to date and want to keep it that way. We desperately want to keep our house. We believe that a loan modification will do just that. We want to preserve our credit and good standing with you and just need a second chance to do that.

[Maurice Bedard]

The letter looks good................


but if you include this line

and will continue to make all payments in full and on time


it doesn't show the hardship.............if you let them know that you don't know how much longer you will be able to make the payments due to the loss of income.................that shows a hardship.


If the lender perceives that no matter what...........you will make the payments.....they may not modify the loan because they know you will pay.

[SanJoseGal]

Good catch!! That makes perfect sense.

This is probably not the thread to be asking this.... but I am in desperate need to know....
I have one thing stopping me from starting the mod process. We have a decent sum of cash in the bank, will that effect our ability to get approved? This is cash that is set aside for the future, i.e. college funds, etc...


Thanks for your help!

[Maurice Bedard]

If you keep it in a bank account then it will be considered liquid assets.........


According to the guidelines.............

Borrowers must also represent and warrant that they do not have sufficient liquid assets to make their monthly mortgage payments.

[SanJoseGal]

What if a large portion is tied up in a CD?

[esdayal]

I was wondering if someone would give me advice on my hardship letter? Let me know if I am missing anything or need to change some wording. Thank you in advance.

To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. 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.
I have had no problem making my payments for over four years now including extra principal whenever possible and do not want that to change. The main reason that caused us to be late is that I purchased my home at 2005 in May. At that time I was employed by Motorola and business was very good. My salary and the possibility of a promotion and raise made me sure that I could easily support my mortgage. Although, holding my position so strong for so many years, unfortunately, a downturn in the market caused my company to reduce its workforce and I was laid off (loss of Job)
It has been a challenge to meet our financial obligations since May 2009 when I lost my job and currently only receiving unemployment $530 per week starting June 16^th. My wife teaches private tuition to small kids at home and brings in $400-$450 per month depending on kids leaving the tuition permanently and new kids joining. This makes total of $2600 per month in earnings while my mortgage payment is close to $2200. Our income does not suffice. We have been diligently sticking to a monthly budget of only using cash and have used our tax refund to pay off some of our credit card and assist in paying down our other bills. We have even cut out pay television to cut expenses. I am currently looking for a second job to assist with paying our bills but have been unsuccessful due to the widespread unemployment rate and so many people applying for the same position.
We are now desperately trying to recover from months of being in the red financially and are scrambling and struggling to pay on bills but cannot seem to catch up to loss of job. Since the purchase of our home, our resale value has declined approximately 20% which has made it impossible to refinance for a lower rate. We have been actively adhering to a strict budget for the expenses including the expenses including COBRA payments, car insurance, food, medical and utilities bills which was developed during a credit counseling session with a, Certified Consumer Credit Counselor with Consumer Credit Counseling Service. Due to our situation improving and due to our diligent efforts we believe this is something we can recover from if we only were given a chance. We strongly believe that a loan modification would benefit us in our current situation.
Considering my current income, there will be no way I can afford the payments since May. We tried to refinance out of this loan but cannot due to the fact that we cannot get the value on the property that we need in order to refinance. Hopefully there is way to renegotiate the terms of my current mortgage (loan modification) to avoid default and help stop foreclosure on my home under the new OBAMA Stimulus package plan.
We have not been late or have missed any payments to date and want to keep it that way. I deeply appreciate your help and understanding in this matter I currently find myself in along with many other homeowners. My family and I are truly grateful for the opportunity that you’ve given us to own our home and have every intention of keeping it for a long while. We desperately want to keep our family in our house as we love the neighborhood and school system that we are in. We believe that a loan modification will do just that. We want to preserve our credit and good standing with you and just need a second chance to do that. Our children will grow up here and we hope that our grandchildren will also. Please consider us a candidate for a loan modification.

Please find attached all of the information you need i.e. 2 most recent paystubs, 2 current bank statements and W-2's.