Examples of a Hardship Letter - Page 4 - Loan Modification Forum

Moe Bedard · 06-04-2009, 11:40 AM

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 · 06-04-2009, 02:22 PM

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!

Moe Bedard · 06-04-2009, 07:26 PM

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 · 06-05-2009, 12:49 AM

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

esdayal · 06-11-2009, 10:33 AM

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.

indeep1959 · 06-11-2009, 06:19 PM

I am in the process of writing a hardship letter and am working with NACA to save my home.

One of the financial burdens that caused me to fall behind,in addition to job loss and reduced income upon returning to work,was a legal issue on the title to my home,which is the mortgage in question. I have had to defend title to this home,and it has caused me to spend an enormous amount of money to do so,contributing to my "shortfall" in funds for the mortgage obviously.

I do not know if I should mention this in my hardship letter,even though it is truly a significant "hardship" that helped me get to this point. I am afraid the mortgager may look unfavorably on this since this concerns title to this house. I'm just afraid they will not work with me and call the whole loan due since it has a defective title.

I know it's a unique situation,but I'm worried it would hurt the chances of a mod and not help.I could wait until the issue is settled for a mod, but I do not have a timetable on that and am afraid I'll wait too long.

Nathaneatscake · 06-16-2009, 04:37 PM

I have been reading some of the example hardship letters that have been posted and I want to thank everyone who has contributed in an effort to help other homeowners. Thank you. I have attached my hardship letter in hopes of obtaining some feedback. I have an interview with a representative from Chase and this is one of the items that they have requested. I want to make sure I have a chance to modify my loan before it is too late. Any feedback will be greatly appreciate it. Thanks.

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that are now starting to become a desperate situation on how we are going to pay and prevent from being delinquent and or foreclosure on our mortgage. We have done everything in our power to make ends meet and although we are not or have not yet been late in our monthly payments, this will soon change. Therefore, I am writing this letter to you for your consideration in 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.

In June of 2008, I was released from my job at CNA due to a reduction in workforce. I was given a severance package which soon was depleted trying to make my mortgage payments and other living expenses.
In September of 2008, I found a job in a law firm. I was ecstatic and grateful because I could now see the light at the end of the tunnel. This was soon darkened by another reduction in workforce in February 2009. It is June of 2009 now and I’m still unable to find work. I have been collecting unemployment since February. This, of course, although it is a help as a supplemental income, it is not enough to cover our mortgage payments and living expenses.

My husband, is the only main bread winner in the family right now and his income varies from paycheck to paycheck because he is self employed (truck driver/owner operator). His job has been slowing down since the economic downfall. As you can imagine, he hauls building materials. I do not have to tell you how the real estate market is and because of this his work orders have been reducing down more and more each week. I know that the company he is working for is trying to do the best they can to keep all the drivers working and for that I am grateful. It’s hard to make ends meet on two incomes let alone one income.
I know it will take time for the economy to get back to the way it was if not better but, for now, we need your help. Our monthly payments are high, $2550.55 a month (this includes our escrow). We have a conventional loan w/o PMI/ARM loan at 7.55% interest rate which will adjust in the year 2010. We would appreciate the opportunity to work out a loan modification where our interest rate will be frozen at a low rate (lowering our monthly payments) for a 30 year fixed rate mortgage. If the rate is just frozen for a couple of years we will find ourselves in the same situation in a few short years from now.

Please take the time to review the information we submitted and consider our request. It is very important to us that we keep our account in good standing and preserve our credit rating as well as protect our main asset, our home.

Thank you in advance for your time and consideration in this matter. We are looking forward to working with you to resolve this situation. If you have any questions please do not hesitate to contact us.

Respectfully submitted,

Moe Bedard · 06-16-2009, 05:00 PM

Nathaneatscake,

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

I took care of your request

and the letter looks good!

Good Luck with the mod!

Keep us posted on your progress...............

Nathaneatscake · 06-16-2009, 05:09 PM

***,

Thank you very much for your help. I will keep you posted...

vaca005 · 06-18-2009, 09:05 AM

Hi, I am about to send my hardship letter to my lender but wanted to get your opinion. Any help would be greatly appreciated. Thanks.

Chase Mortgage

Loan#

To Whom It May Concern:

We are writing this letter to explain our unfortunate circumstances that have caused us to become late and possibly delinquent in our future mortgage payments. 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 or work with us on a solution. I would like to ensure you that our number one goal is to keep our home. This is the home of our dreams that we worked so hard for and would be heartbroken if we loose it. We would really appreciate the opportunity to keep our home. As you can probably see in your records we are trying very hard and are making our payments. Due to a reduction in income in both me and my wife we find it very difficult to make ends meet. We were one of the unfortunate ones that got into a loan which had NEG AM. from a previous lender. We were not aware of this until we saw our balance increase drastically and had no choice but to refinance to another loan. Due to our balance increasing drastically we could only get an ARM loan in which we are in now. We have a 2nd with Chase also at a high interest rate. Our main goal as I mentioned is to keep our home. We would appreciate it if you can work with us to get rid of the 2nd and just have one 30yr fixed at a lower interest rate. We would like to have a comfortable payment which will allow us to keep our home. We truly hope that you will consider working with us. Enclosed is the application and other documentation required. Thank you in advance for your consideration in this matter.

Sincerely

June 17, 2009

Moe Bedard · 06-18-2009, 11:39 AM

vaca005,

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

The letter looks good although they would not be willing to just wipe away a second, but may be able to modify it..............investors are not willing to do principal reductions............

For a modification they are working to make the payment on the first lien alone including principal, interest, taxes, and homeowner's insurance to 31% of gross income..............and when approved for the modification under these guidelines they will work on the second lien after that as a part of the program.............

The steps to take and the information needed along with the contact number can be found here.................
https://www.chase.com/chf/mortgage/hrm_steps

Nathaneatscake · 06-18-2009, 01:14 PM

vaca005, thank you for your reply to my hardship letter, I truly appreciate your feed back. In reading your example letter in reply to mine, I'm confused. From reading your example letter, if I am not mistaken, I have two loans in one that I need to pay back? "Due to our balance increasing drastically we could only get an ARM loan in which we are in now. We have a 2nd with Chase also at a high interest rate." It's true that we refinanced and all of that but we thought when you refinance the previous loan is paid in full and you start all over again with a new mortgage. I can't tell you how ignorant I am to all of this. I should have done my homework.

Also thank you for the website. I had already gone into the Chase website to get the info for the modification and I have contacted a rep from Chase. We have an appointment with them. This is why we needed the hardship letter. Is one of the items they requested on their list.

Well, I just hope everything works out. I'm not feeling very good about this situation we are in.

Thanks again.

bruinseattrojans · 06-18-2009, 01:58 PM

Hello Moe, *** and any other admins that don't come to mind this second. I have read much of the site and am so grateful I found it. I have been languishing for some time trying to figure out how to navigate this process. It seems the Wachovia customer service folks no little to nothing about what their own company does or doesn't do.

Nevertheless, I contacted the office of the president and will be faxing my paperwork to them tomorrow. In the meantime, will you please look over my hardship letter and let me know what you think?

Thanks a million!

--------------------

Thank you for giving me your information and taking the time to help me with this process. I have been attempting to secure relief on my home mortgage since the fall of last year but have not been successful in speaking to the at Loss Mitigation. I have submitted the attached information to you today to apply for the Making Home Affordable Program.

I have a total mortgage of $190,000 at 7% interest on a “Pick-a-Pay” loan, $700 minimum payment (adding several hundred dollars to the principal), $1150 interest only payment, or $1300 for both interest and principal. Additionally, my loan will “reset” next summer, which should significantly increase my payment. My monthly income consists of $1250 from Social Security (I have been fully disabled since 199?) and varying bi-annual disbursements from my tribe, the Quechan, from gaming revenues. Most recently, these disbursements have totaled $7000 per year.

While I am current on my mortgage payments, it has been increasingly difficult for me to make these payments with my regular monthly income for years, beginning when my ex-wife left our family more than 7 years ago. Wishing to remain in my home for more than 40 years and maintain a home for my son and daughter, of whom I shared join custody, I utilized mortgage refinancing and credit cards to stay afloat, never falling behind in either. I executed my last refinance in 2006, choosing the ‘Pick-a-Pay” that would give me the options I needed to ensure that I would not fall behind. At the time, my home was valued somewhere at or near $400,000.

To resolve this recurrent shortage, I planned to see increased disbursements from my tribe, who had anticipated for years to open a second casino in 2008, which would result in increased revenue disbursements beginning January 2009 for our 3,000+ members. This increased income, with a subsequent planned refinance in 2010 into a conventional 30 year fixed mortgage, would finally place me on a more stable financial footing. However, as the economy fell apart last year I no longer heard these sunny estimates of increased revenues, and instead expect to see reduced disbursements for some time. No longer anticipating this increased income, I exhausted all savings trying to remain current on my mortgage. Since I was and am no longer eligible to refinance, this aspect of my plan also disappeared and I was forced to borrow money from family for over a year now to stay current on my mortgage and other obligations. Beginning sometime this Summer, I expect to deplete these funds that have been available from family, at which point I will no longer be able to meet my financial obligations.

Being fully disabled, I receive Social Security payments of $1250 monthly, of which I am required to pay $XXX for a Medicare health plan. Additionally, I receive payments twice a year from my tribe from casino revenues. These payments have most recently totaled $7000 per year, but the amount will fluctuate depending on revenue. This point is significant, as the current state of the economy renders the likelihood of reduced disbursements an eventuality. Nevertheless, all together my current income totals $22,000 annually, or $1833 per month. With monthly health expenses of $XXX and living expenses of $XXX, I am left with only $XXX to pay the mortgage.

I do not want to lose my home for over 40 years and I don’t want to slip further and further into debt with credit cards, but I can no longer see a way to pay for all my bills with my current income and see no possibility of increasing my income in the near future. My only choice will be to run up credit card debt paying for regular living expenses and start making the $700 minimum payment and add more and more to the principal of my mortgage. However, even this minimum payment option will be gone beginning next Summer, when my loan resets. I do not want to lose my family home, but even assuming I wanted to sell my home it wouldn’t do much good. My home is valued less than $240,000 now, and there are numerous other houses on my block that aren’t selling. Assuming I was able to find a buyer in this terrible market, I would be left with little to nothing to start somewhere else. And with my low income, I don’t know where I would go. The bottom line is that I am at the end of a long rope. Without help I will begin falling behind in my obligations within the next month, maybe two.

The Making Home Afforable Program would immediately address the issue I have faced with my debt obligations. Reducing the rate on my home loan so as to reduce the monthly payment to 31% of my income would immediately place me on sound financial footing for the entire length of the program. This will buy me much needed time to explore further options for long-term resolution of this issue, as I am fully aware that the 31% payment is not permanent. Since my last child is approaching majority, I will explore two options to achieve this stability once she leaves the home. First, I will attempt to invite a friend or family member to live with me and help pay the note. Second, I can sell my home in, hopefully, a more favorable market. Additionally, once we move past the terrible economic downturn we all experienced beginning last year, I can be reasonably optimistic that my tribe will finally realize increased revenues from their second casino. All in all, the MHA program will help prevent me from collapsing financially and give me the time I need to make these arrangements.

Thank you so much for taking the time to read this. I appreciate everything you’re doing for me and will try my best to remain patient as we navigate through this process. I have spent countless hours on the phone and sending paperwork to Wachovia’s Loss Mitigation office, but I could never get a consistent answer on whether Wachovia was even participating in this program. Should you need any further information, please don’t hesitate to call or email me.

vaca005 · 06-18-2009, 03:26 PM

Thank you *** Damiano for you response and feedback. I am new to the loan modification world and was not sure what they do with the 2nd. Whatever they do will be good. Thanks again.

Damon101 · 06-18-2009, 06:37 PM

***/Moe can you or one of the other knowledgeable mods look over my Hardship letter? thanks

To the Default Service Resolution Team:

I am writing this letter to explain my unfortunate set of circumstances that have caused me to become delinquent on the mortgage. I have done everything in my power to make ends meet but unfortunately I have fallen short and would like you to consider working with me to modify my loan. My number one goal is to keep my home and I would really appreciate the opportunity to do that.
<>There are several reasons that caused me to fall behind on my payments:<>
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1) November of 2005 my position at Chemcraft was eliminated. At the time I was in an option ARM Mortgage with Countrywide. During my 14 months of unemployment I was able to make the payments with unemployment insurance & by using my savings.
2) In January of 2007 I became employed with Frazee Paint. However my new job pays $20.000 less per year. My option ARM was resetting at this point.
3) In January 2008 I got out of the Option ARM Loan & into my current Fixed Rate Loan with HSBC which was supposed to preserve some of the equity. The monthly payment was higher than I could afford. I once again used my savings to make the payments.
4) In January of 2009 all raises were frozen until further notice. Also in January I lost my long time roommate. My savings were exhausted at this point.
5) February thru March our hours at work were reduced to 32 per week.

It is my full intention to pay what I owe. But at this time I have exhausted all of my income and resources so I am turning to you for help.

My situation has got better because I’m back to full time employment. Additionally since April I have been able to rent out two of my rooms for additional income. I feel that a loan modification would benefit us both. I would appreciate if you can work with me utilizing the “Making Home Affordable” program so I can keep my home and also afford to make amends with your firm.

I truly hope that you will consider working with me and I am anxious to get this settled so we all can move on.

Moe Bedard · 06-18-2009, 11:34 PM

Hi bruinseattrojans,

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

Try to take the information that you have in the letter and format it to the sections here below.........this way it has a flow to it..................you have all of the necessary components.........it is just a bit scattered, that is all........

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

Wachovia does have modification programs available for the pick a pay loan.........try contacting the executive team to see what they are.........
1-866-642-9407

Keep us posted on your progress................and Good Luck!

Moe Bedard · 06-18-2009, 11:38 PM

Hi Damon101,

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

Your letter looks good............and follows formatting.....send it off.......

Keep us posted and good luck!!

macgon · 06-19-2009, 01:39 PM

Hi! I am new to the forum. My situation is very similar to a previous post where I also agreed to take out this loan for my cousin when they weren't able to qualify. The loan is a 3 yr arm that will be adjusting in November. I've never looked at this house as anything other than theirs but now that he got laid off I need to take the necessary steps to hopefully get the loan modified. I was told by the lender that I can potentially qualify for a modification and they sent me a package to fill out. They also require a hardship letter. This is my first stab at it. There is also a second lien on this loan with another lender who has already prequalified me for a modification. Should I include that in this letter? Your comments will be very much appreciated.

To Whom It May Concern:

I am writing this letter to explain the 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 is the temporary layoff of the main contributor that pays this particular loan. He works in the construction industry which has come to a halt because of the economic crisis our nation is going through. Because of this situation we have not been able to make the monthly payment since April 2009. Now, it’s to the point where we cannot afford to pay what is owed to ACS.

The layoffs occurred approximately 2½ months ago and we were informed that the construction projects may not resume until after August or September of this year. The company has also forewarned us that when the job does resume there will be limited time schedules available.

During this difficult time we are unable to make a monthly payment amount of $1536 and we feel that a loan modification would benefit us both. We would appreciate it if you would work with us to lower the terms of our loan so we can keep our home and also afford to make amends with your firm. Modifying this loan to a 30 yr fixed low interest rate, adding the delinquent amount back into our principal and lowering the monthly payment amount would truly help us out and keep us from foreclosing.

I am including the financial worksheet that was sent to me in which I’ve made some adjustments to cut back on expenses so that we can qualify for this loan modification. Please note that we have made changes to lower monthly expenses in the areas of utilities, transportation, Cable Services and the pool service that was listed under Association Fees or Monthly Dues. I’ve also corrected my Net salary/wages $2800 and I’ve included the amount that I am currently being given as rent of $700.

Your time and consideration is truly appreciated.

Moe Bedard · 06-19-2009, 04:03 PM

Hi macgon,

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

Looks Good............you described the hardship and the steps you are taking to be able to keep your home...........

Good Luck with the mod!!

wagishaw · 06-23-2009, 11:12 AM

Hello all. Another newbie here. This is a great site which appears to help many like us who are involved in this terrible mortgage situation. What follows is my own 1st draft of a hardship letter. Any comments would be greatly appreciated as I will soon have to send this to BofA. Thanks in advance!

We are writing today in the hopes that you will consider granting us a loan modification on our mortgage. This house we occupy is more than just a place to lay our head and far more than an investment; it’s Home. It’s where we’d like to stay. It’s where our memories are and where we really want to create more. We’ve (possibly fool-heartedly) invested a great deal of money and love into making our home ours.fficeffice" />>>
We are currently in a neg-am loan with an adjustable rate. When we first obtained this loan, we thought the market would keep getting better. We were told that we could re-finance within 6 months to a fixed rate loan. At the time it seemed logical enough. Then the market crashed. We are in a loan that was originally sold for 320k and now by paying only the minimum payment due, our principal balance has grown to more than 340k. Our amortized payment is well over 2 thousand dollars a month and this is simply unaffordable. To make matters worse, it appears that our home’s estimated value is now right around 150k. This puts us nearly 200k upsidedown. >>
As you can see by our credit report, our payment history is excellent. All our accounts (secured or unsecured) have been current over the last 6 years. We’ve no bankruptcies, liens, late payments, judgments or defaults. We are dedicated to repaying our loans. Unfortunately, between our other debts that we’ve incurred while adding home improvements, getting married and a considerable auto accident that seriously injured Gina and myself in December of ’07, it is now clear that we cannot afford this house on these current terms. >>
We have stopped using credit cards and are trying in vain to payoff all debtors. We have attempted to find second jobs but to no avail. All frivolous expenses are now gone.My mother has generously loaned us money (several times) to help us keep up with our debts but our situation is rather grave and we are seeking your help in this matter. I’m afraid that short of bankruptcy this is our only chance.>>
We are hoping (in a loan modification) to obtain a fixed interest rate of 4.5% or better and a possible reduction of the principal balance that might reflect the current market value. We greatly appreciate your attention on this very important matter

jbrannam · 06-24-2009, 12:18 PM

Would greatly appreciate review/critique of my hardship letter. Thanks!

Please give the utmost consideration to our request for loan modification under the Making Home Affordable modification program.

I would like to describe the circumstances which led to our financial hardship. In October 2005 my husband required surgery for carpal tunnel syndrome. Due to the lengthy delay in the worker’s compensation process and his recovery from surgery, he was not released to return to work until November 2006. In December 2006 he was hit by a highway patrol vehicle while standing on the highway performing chain control duties for his employer, CA Dept. of Transportation. The impact caused multiple minor injuries that have required multiple surgeries over the past two years. Initially he was able to maintain his level of income by supplementing the workers comp pay with his large balance of accrued leave credits, although he no longer received the approx. $10,000/yr. in overtime he’d earned prior. After about a year, his income was reduced by 1/3 and then finally in Dec. 2008 he hit the two year cap and was no longer entitled to any payment from workers comp.

Until recently we were able to continue to fulfill all of our obligations in a timely manner and enjoyed an excellent credit rating and payment history despite occasionally having to resort to accumulating installment debt for necessary and ordinary expenses. I returned to work for the State of CA in Aug. 2006 in order to maintain health benefits and steady income. We have compensated for the income reduction by selling one of our vehicles, and eliminating vacations and unnecessary purchases among other things. We’ve identified further reductions in monthly expenses that can be made and are working diligently to save our home from foreclosure.

We are confident, that given the opportunity for a loan modification, we can resolve the issues that caused this financial distress. I am fortunate that my employment with the State of CA is very secure. Recent changes to my classification have increased my monthly salary to $3953/mo with a $2400 annual pay differential (bonus) and I typically earn $1200/yr. in overtime. I will be receiving an annual 5% salary increase in Sep. 09. which will increase my gross pay to $4151/mo + $2400 bonus. I also expect to be receiving a promotion in the next 12 months which will increase the salary for my classification to $5400/mo. In addition, I still retain a real estate license and have earned about $3000/yr. the last couple years. My husband will be returning to work in the next few months as well. We’ve filed Chapter 7 bankrutpcy to resolve the installment debt and expect the discharge mid-July. We will have no monthly obligations outside our household expenses except for a vehicle loan that we’ve determined we can sell if necessary.
We are committed, honest, hardworking people who’ve found themselves in a very difficult situation of which so many aspects are beyond our control. It’s been devastating for us to resort to these means, with our only goal being to save our home. Our family has established deep roots in our community and our home has given us sanctuary in an extremely stressful time. We’ve come so far, and are so close to resolution, that we’re confident it would be in the best interest of everyone for a loan modification to be approved.

Thank you for your time and consideration.

Moe Bedard · 06-24-2009, 12:42 PM

jbrannam,

The letter looks good............to the point

prisonerno6 · 06-30-2009, 10:42 AM

Would you mind critiquing my letter? Thanks!

Lender Name: BOA
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 fall behind is the period of unemployment I had during 2007 through 2009. On December 7, 2007 the company I was working for shutdown operations and I was unemployed until April 7, 2008. During that time I was able to continue payments on our two (2) loans. Then on August 29, 2008 I was laid off when operations were moved to China. I remained unemployed until May 11, 2009. During that period of unemployment I was able to make payments on the loan until January 2009. From January 2009 till May 2009 was a difficult time and we were unable to make monthly payment amounts of $3198 and $782 and we feel that a loan modification would benefit us both.

Our situation has gotten better since I have started working once again and we feel that a loan modification would benefit us both. We would appreciate it if you would work with us to lower the terms of our two (2) loans so we can keep our home and also afford to make amends with your firm. Modifying our two (2) loans to one (1) 30 yr fixed low interest rate, adding the delinquent amount back into our principal and lowering the monthly payment amount would truly help us out and keep us from foreclosing

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 · 06-30-2009, 11:07 AM

Quote:

Originally Posted by prisonerno6

we feel that a loan modification would benefit us both.

If it were me, I'd leave that part out (that the bank would benefit).

Quote:

Originally Posted by prisonerno6

Our situation has gotten better since I have started working once again

If I were the analyst looking at your application, I might ask, "Well, s/he got another job, so they're back on track. What's the problem?" You might want to say exactly why a modification is necessary, even though you got another job. Does the new job pay less? Are there new expenses? Are finances too tight to catch up with the missed mortgages? If you can elucidate any of that using numbers (e.g., "my previous job paid $5k/mo but the new job pays only $3k/mo," or "we missed 12 payments totalling $X, and without a modification, it would take us $Z years to catch up."

Just my two cents worth. I'm in deep-sh*t myself. Good luck. God help us all.

-BLZB

prisonerno6 · 07-01-2009, 07:46 AM

Thanks for the input beelzebub!

Does this make more sense now? See blue.

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 fall behind is the period of unemployment I had during 2007 through 2009. On December 7, 2007 the company I was working for shutdown operations and I was unemployed until April 7, 2008. During that time I was able to continue payments on our two (2) loans. Then on August 29, 2008 I was laid off when operations were moved to ffice:smarttags" />China. I remained unemployed until May 11, 2009. During that period of unemployment I was able to make payments on the loan until January 2009. From January 2009 till May 2009 was a difficult time and we were unable to make monthly payment amounts of $3198 and $782.

I have started working once again but with finances extremely tight and since we missed 4 payments totaling $14,356 and without a modification, it would take us 4.75 years to make the loan current. We would appreciate it if you would work with us to lower the terms of our two (2) loans so we can keep our home and also afford to make amends with your firm. Modifying our two (2) loans to one (1) 30 yr fixed low interest rate, adding the delinquent amount back into our principal and lowering the monthly payment amount would truly help us out and keep us from foreclosing.

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,

Borrower’s Signature

Yes! Please God Help Us All!

06-04-2009, 11:40 AM	#76 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,682	Re: Examples of a Hardship Letter 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. __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

06-04-2009, 02:22 PM	#77 (permalink)
SanJoseGal Senior Member Join Date: May 2009 Posts: 39	Re: Examples of a Hardship Letter 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!

06-04-2009, 07:26 PM	#78 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,682	Re: Examples of a Hardship Letter 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. __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

06-05-2009, 12:49 AM	#79 (permalink)
SanJoseGal Senior Member Join Date: May 2009 Posts: 39	Re: Examples of a Hardship Letter What if a large portion is tied up in a CD?

06-11-2009, 10:33 AM	#80 (permalink)
esdayal Junior Member Join Date: Jun 2009 Posts: 1	Re: Examples of a Hardship Letter 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.

06-11-2009, 06:19 PM	#81 (permalink)
indeep1959 Member Join Date: Jan 2009 Posts: 24	Re: Examples of a Hardship Letter I am in the process of writing a hardship letter and am working with NACA to save my home. One of the financial burdens that caused me to fall behind,in addition to job loss and reduced income upon returning to work,was a legal issue on the title to my home,which is the mortgage in question. I have had to defend title to this home,and it has caused me to spend an enormous amount of money to do so,contributing to my "shortfall" in funds for the mortgage obviously. I do not know if I should mention this in my hardship letter,even though it is truly a significant "hardship" that helped me get to this point. I am afraid the mortgager may look unfavorably on this since this concerns title to this house. I'm just afraid they will not work with me and call the whole loan due since it has a defective title. I know it's a unique situation,but I'm worried it would hurt the chances of a mod and not help.I could wait until the issue is settled for a mod, but I do not have a timetable on that and am afraid I'll wait too long.

06-16-2009, 04:37 PM	#82 (permalink)
Nathaneatscake Junior Member Join Date: Jun 2009 Posts: 3	Re: Examples of a Hardship Letter I have been reading some of the example hardship letters that have been posted and I want to thank everyone who has contributed in an effort to help other homeowners. Thank you. I have attached my hardship letter in hopes of obtaining some feedback. I have an interview with a representative from Chase and this is one of the items that they have requested. I want to make sure I have a chance to modify my loan before it is too late. Any feedback will be greatly appreciate it. Thanks. To Whom It May Concern: I am writing this letter to explain my unfortunate set of circumstances that are now starting to become a desperate situation on how we are going to pay and prevent from being delinquent and or foreclosure on our mortgage. We have done everything in our power to make ends meet and although we are not or have not yet been late in our monthly payments, this will soon change. Therefore, I am writing this letter to you for your consideration in 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. In June of 2008, I was released from my job at CNA due to a reduction in workforce. I was given a severance package which soon was depleted trying to make my mortgage payments and other living expenses. In September of 2008, I found a job in a law firm. I was ecstatic and grateful because I could now see the light at the end of the tunnel. This was soon darkened by another reduction in workforce in February 2009. It is June of 2009 now and I’m still unable to find work. I have been collecting unemployment since February. This, of course, although it is a help as a supplemental income, it is not enough to cover our mortgage payments and living expenses. My husband, is the only main bread winner in the family right now and his income varies from paycheck to paycheck because he is self employed (truck driver/owner operator). His job has been slowing down since the economic downfall. As you can imagine, he hauls building materials. I do not have to tell you how the real estate market is and because of this his work orders have been reducing down more and more each week. I know that the company he is working for is trying to do the best they can to keep all the drivers working and for that I am grateful. It’s hard to make ends meet on two incomes let alone one income. I know it will take time for the economy to get back to the way it was if not better but, for now, we need your help. Our monthly payments are high, $2550.55 a month (this includes our escrow). We have a conventional loan w/o PMI/ARM loan at 7.55% interest rate which will adjust in the year 2010. We would appreciate the opportunity to work out a loan modification where our interest rate will be frozen at a low rate (lowering our monthly payments) for a 30 year fixed rate mortgage. If the rate is just frozen for a couple of years we will find ourselves in the same situation in a few short years from now. Please take the time to review the information we submitted and consider our request. It is very important to us that we keep our account in good standing and preserve our credit rating as well as protect our main asset, our home. Thank you in advance for your time and consideration in this matter. We are looking forward to working with you to resolve this situation. If you have any questions please do not hesitate to contact us. Respectfully submitted,

06-16-2009, 05:00 PM	#83 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,682	Re: Examples of a Hardship Letter Nathaneatscake, Welcome to the forum and thank you for joining................ I took care of your request and the letter looks good! Good Luck with the mod! Keep us posted on your progress............... __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

06-16-2009, 05:09 PM	#84 (permalink)
Nathaneatscake Junior Member Join Date: Jun 2009 Posts: 3	Re: Examples of a Hardship Letter ***, Thank you very much for your help. I will keep you posted...

06-18-2009, 09:05 AM	#85 (permalink)
vaca005 Junior Member Join Date: Jun 2009 Posts: 2	Re: Examples of a Hardship Letter Hi, I am about to send my hardship letter to my lender but wanted to get your opinion. Any help would be greatly appreciated. Thanks. Chase Mortgage Loan# To Whom It May Concern: We are writing this letter to explain our unfortunate circumstances that have caused us to become late and possibly delinquent in our future mortgage payments. 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 or work with us on a solution. I would like to ensure you that our number one goal is to keep our home. This is the home of our dreams that we worked so hard for and would be heartbroken if we loose it. We would really appreciate the opportunity to keep our home. As you can probably see in your records we are trying very hard and are making our payments. Due to a reduction in income in both me and my wife we find it very difficult to make ends meet. We were one of the unfortunate ones that got into a loan which had NEG AM. from a previous lender. We were not aware of this until we saw our balance increase drastically and had no choice but to refinance to another loan. Due to our balance increasing drastically we could only get an ARM loan in which we are in now. We have a 2nd with Chase also at a high interest rate. Our main goal as I mentioned is to keep our home. We would appreciate it if you can work with us to get rid of the 2nd and just have one 30yr fixed at a lower interest rate. We would like to have a comfortable payment which will allow us to keep our home. We truly hope that you will consider working with us. Enclosed is the application and other documentation required. Thank you in advance for your consideration in this matter. Sincerely June 17, 2009

06-18-2009, 11:39 AM	#86 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,682	Re: Examples of a Hardship Letter vaca005, Welcome to the forum and thank you for joining................. The letter looks good although they would not be willing to just wipe away a second, but may be able to modify it..............investors are not willing to do principal reductions............ For a modification they are working to make the payment on the first lien alone including principal, interest, taxes, and homeowner's insurance to 31% of gross income..............and when approved for the modification under these guidelines they will work on the second lien after that as a part of the program............. The steps to take and the information needed along with the contact number can be found here................. https://www.chase.com/chf/mortgage/hrm_steps __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

06-18-2009, 01:14 PM	#87 (permalink)
Nathaneatscake Junior Member Join Date: Jun 2009 Posts: 3	Re: Examples of a Hardship Letter vaca005, thank you for your reply to my hardship letter, I truly appreciate your feed back. In reading your example letter in reply to mine, I'm confused. From reading your example letter, if I am not mistaken, I have two loans in one that I need to pay back? "Due to our balance increasing drastically we could only get an ARM loan in which we are in now. We have a 2nd with Chase also at a high interest rate." It's true that we refinanced and all of that but we thought when you refinance the previous loan is paid in full and you start all over again with a new mortgage. I can't tell you how ignorant I am to all of this. I should have done my homework. Also thank you for the website. I had already gone into the Chase website to get the info for the modification and I have contacted a rep from Chase. We have an appointment with them. This is why we needed the hardship letter. Is one of the items they requested on their list. Well, I just hope everything works out. I'm not feeling very good about this situation we are in. Thanks again.

06-18-2009, 01:58 PM	#88 (permalink)
bruinseattrojans Junior Member Join Date: Jun 2009 Posts: 1	Re: Examples of a Hardship Letter Hello Moe, *** and any other admins that don't come to mind this second. I have read much of the site and am so grateful I found it. I have been languishing for some time trying to figure out how to navigate this process. It seems the Wachovia customer service folks no little to nothing about what their own company does or doesn't do. Nevertheless, I contacted the office of the president and will be faxing my paperwork to them tomorrow. In the meantime, will you please look over my hardship letter and let me know what you think? Thanks a million! -------------------- Thank you for giving me your information and taking the time to help me with this process. I have been attempting to secure relief on my home mortgage since the fall of last year but have not been successful in speaking to the at Loss Mitigation. I have submitted the attached information to you today to apply for the Making Home Affordable Program. I have a total mortgage of $190,000 at 7% interest on a “Pick-a-Pay” loan, $700 minimum payment (adding several hundred dollars to the principal), $1150 interest only payment, or $1300 for both interest and principal. Additionally, my loan will “reset” next summer, which should significantly increase my payment. My monthly income consists of $1250 from Social Security (I have been fully disabled since 199?) and varying bi-annual disbursements from my tribe, the Quechan, from gaming revenues. Most recently, these disbursements have totaled $7000 per year. While I am current on my mortgage payments, it has been increasingly difficult for me to make these payments with my regular monthly income for years, beginning when my ex-wife left our family more than 7 years ago. Wishing to remain in my home for more than 40 years and maintain a home for my son and daughter, of whom I shared join custody, I utilized mortgage refinancing and credit cards to stay afloat, never falling behind in either. I executed my last refinance in 2006, choosing the ‘Pick-a-Pay” that would give me the options I needed to ensure that I would not fall behind. At the time, my home was valued somewhere at or near $400,000. To resolve this recurrent shortage, I planned to see increased disbursements from my tribe, who had anticipated for years to open a second casino in 2008, which would result in increased revenue disbursements beginning January 2009 for our 3,000+ members. This increased income, with a subsequent planned refinance in 2010 into a conventional 30 year fixed mortgage, would finally place me on a more stable financial footing. However, as the economy fell apart last year I no longer heard these sunny estimates of increased revenues, and instead expect to see reduced disbursements for some time. No longer anticipating this increased income, I exhausted all savings trying to remain current on my mortgage. Since I was and am no longer eligible to refinance, this aspect of my plan also disappeared and I was forced to borrow money from family for over a year now to stay current on my mortgage and other obligations. Beginning sometime this Summer, I expect to deplete these funds that have been available from family, at which point I will no longer be able to meet my financial obligations. Being fully disabled, I receive Social Security payments of $1250 monthly, of which I am required to pay $XXX for a Medicare health plan. Additionally, I receive payments twice a year from my tribe from casino revenues. These payments have most recently totaled $7000 per year, but the amount will fluctuate depending on revenue. This point is significant, as the current state of the economy renders the likelihood of reduced disbursements an eventuality. Nevertheless, all together my current income totals $22,000 annually, or $1833 per month. With monthly health expenses of $XXX and living expenses of $XXX, I am left with only $XXX to pay the mortgage. I do not want to lose my home for over 40 years and I don’t want to slip further and further into debt with credit cards, but I can no longer see a way to pay for all my bills with my current income and see no possibility of increasing my income in the near future. My only choice will be to run up credit card debt paying for regular living expenses and start making the $700 minimum payment and add more and more to the principal of my mortgage. However, even this minimum payment option will be gone beginning next Summer, when my loan resets. I do not want to lose my family home, but even assuming I wanted to sell my home it wouldn’t do much good. My home is valued less than $240,000 now, and there are numerous other houses on my block that aren’t selling. Assuming I was able to find a buyer in this terrible market, I would be left with little to nothing to start somewhere else. And with my low income, I don’t know where I would go. The bottom line is that I am at the end of a long rope. Without help I will begin falling behind in my obligations within the next month, maybe two. The Making Home Afforable Program would immediately address the issue I have faced with my debt obligations. Reducing the rate on my home loan so as to reduce the monthly payment to 31% of my income would immediately place me on sound financial footing for the entire length of the program. This will buy me much needed time to explore further options for long-term resolution of this issue, as I am fully aware that the 31% payment is not permanent. Since my last child is approaching majority, I will explore two options to achieve this stability once she leaves the home. First, I will attempt to invite a friend or family member to live with me and help pay the note. Second, I can sell my home in, hopefully, a more favorable market. Additionally, once we move past the terrible economic downturn we all experienced beginning last year, I can be reasonably optimistic that my tribe will finally realize increased revenues from their second casino. All in all, the MHA program will help prevent me from collapsing financially and give me the time I need to make these arrangements. Thank you so much for taking the time to read this. I appreciate everything you’re doing for me and will try my best to remain patient as we navigate through this process. I have spent countless hours on the phone and sending paperwork to Wachovia’s Loss Mitigation office, but I could never get a consistent answer on whether Wachovia was even participating in this program. Should you need any further information, please don’t hesitate to call or email me.

06-18-2009, 03:26 PM	#89 (permalink)
vaca005 Junior Member Join Date: Jun 2009 Posts: 2	Re: Examples of a Hardship Letter Thank you *** Damiano for you response and feedback. I am new to the loan modification world and was not sure what they do with the 2nd. Whatever they do will be good. Thanks again.

06-18-2009, 06:37 PM	#90 (permalink)
Damon101 Junior Member Join Date: Jun 2009 Posts: 1	Please review ***/Moe can you or one of the other knowledgeable mods look over my Hardship letter? thanks To the Default Service Resolution Team: I am writing this letter to explain my unfortunate set of circumstances that have caused me to become delinquent on the mortgage. I have done everything in my power to make ends meet but unfortunately I have fallen short and would like you to consider working with me to modify my loan. My number one goal is to keep my home and I would really appreciate the opportunity to do that. <>There are several reasons that caused me to fall behind on my payments:<> <> 1) November of 2005 my position at Chemcraft was eliminated. At the time I was in an option ARM Mortgage with Countrywide. During my 14 months of unemployment I was able to make the payments with unemployment insurance & by using my savings. 2) In January of 2007 I became employed with Frazee Paint. However my new job pays $20.000 less per year. My option ARM was resetting at this point. 3) In January 2008 I got out of the Option ARM Loan & into my current Fixed Rate Loan with HSBC which was supposed to preserve some of the equity. The monthly payment was higher than I could afford. I once again used my savings to make the payments. 4) In January of 2009 all raises were frozen until further notice. Also in January I lost my long time roommate. My savings were exhausted at this point. 5) February thru March our hours at work were reduced to 32 per week. It is my full intention to pay what I owe. But at this time I have exhausted all of my income and resources so I am turning to you for help. My situation has got better because I’m back to full time employment. Additionally since April I have been able to rent out two of my rooms for additional income. I feel that a loan modification would benefit us both. I would appreciate if you can work with me utilizing the “Making Home Affordable” program so I can keep my home and also afford to make amends with your firm. I truly hope that you will consider working with me and I am anxious to get this settled so we all can move on.

06-18-2009, 11:34 PM	#91 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,682	Re: Examples of a Hardship Letter Hi bruinseattrojans, Welcome to the fourum and thank you for joining............. Try to take the information that you have in the letter and format it to the sections here below.........this way it has a flow to it..................you have all of the necessary components.........it is just a bit scattered, that is all........ 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 Wachovia does have modification programs available for the pick a pay loan.........try contacting the executive team to see what they are......... 1-866-642-9407 Keep us posted on your progress................and Good Luck! __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

06-18-2009, 11:38 PM	#92 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,682	Re: Examples of a Hardship Letter Hi Damon101, Welcome to the forum and thank you for joining.......... Your letter looks good............and follows formatting.....send it off....... Keep us posted and good luck!! __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

06-19-2009, 01:39 PM	#93 (permalink)
macgon Junior Member Join Date: Jun 2009 Posts: 1	Re: Examples of a Hardship Letter Hi! I am new to the forum. My situation is very similar to a previous post where I also agreed to take out this loan for my cousin when they weren't able to qualify. The loan is a 3 yr arm that will be adjusting in November. I've never looked at this house as anything other than theirs but now that he got laid off I need to take the necessary steps to hopefully get the loan modified. I was told by the lender that I can potentially qualify for a modification and they sent me a package to fill out. They also require a hardship letter. This is my first stab at it. There is also a second lien on this loan with another lender who has already prequalified me for a modification. Should I include that in this letter? Your comments will be very much appreciated. To Whom It May Concern: I am writing this letter to explain the 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 is the temporary layoff of the main contributor that pays this particular loan. He works in the construction industry which has come to a halt because of the economic crisis our nation is going through. Because of this situation we have not been able to make the monthly payment since April 2009. Now, it’s to the point where we cannot afford to pay what is owed to ACS. The layoffs occurred approximately 2½ months ago and we were informed that the construction projects may not resume until after August or September of this year. The company has also forewarned us that when the job does resume there will be limited time schedules available. During this difficult time we are unable to make a monthly payment amount of $1536 and we feel that a loan modification would benefit us both. We would appreciate it if you would work with us to lower the terms of our loan so we can keep our home and also afford to make amends with your firm. Modifying this loan to a 30 yr fixed low interest rate, adding the delinquent amount back into our principal and lowering the monthly payment amount would truly help us out and keep us from foreclosing. I am including the financial worksheet that was sent to me in which I’ve made some adjustments to cut back on expenses so that we can qualify for this loan modification. Please note that we have made changes to lower monthly expenses in the areas of utilities, transportation, Cable Services and the pool service that was listed under Association Fees or Monthly Dues. I’ve also corrected my Net salary/wages $2800 and I’ve included the amount that I am currently being given as rent of $700. Your time and consideration is truly appreciated.

06-19-2009, 04:03 PM	#94 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,682	Re: Examples of a Hardship Letter Hi macgon, welcome to the forum and thank you for joining............. Looks Good............you described the hardship and the steps you are taking to be able to keep your home........... Good Luck with the mod!! __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

06-23-2009, 11:12 AM	#95 (permalink)
wagishaw Junior Member Join Date: Jun 2009 Posts: 1	Re: Examples of a Hardship Letter Hello all. Another newbie here. This is a great site which appears to help many like us who are involved in this terrible mortgage situation. What follows is my own 1st draft of a hardship letter. Any comments would be greatly appreciated as I will soon have to send this to BofA. Thanks in advance! We are writing today in the hopes that you will consider granting us a loan modification on our mortgage. This house we occupy is more than just a place to lay our head and far more than an investment; it’s *Home*. It’s where we’d like to stay. It’s where our memories are and where we really want to create more. We’ve (possibly fool-heartedly) invested a great deal of money and love into making our home ours.fficeffice" />>> We are currently in a neg-am loan with an adjustable rate. When we first obtained this loan, we thought the market would keep getting better. We were told that we could re-finance within 6 months to a fixed rate loan. At the time it seemed logical enough. Then the market crashed. We are in a loan that was originally sold for 320k and now by paying only the minimum payment due, our principal balance has grown to more than 340k. Our amortized payment is well over 2 thousand dollars a month and this is simply unaffordable. To make matters worse, it appears that our home’s estimated value is now right around 150k. This puts us nearly 200k upsidedown. >> As you can see by our credit report, our payment history is excellent. All our accounts (secured or unsecured) have been current over the last 6 years. We’ve no bankruptcies, liens, late payments, judgments or defaults. We are dedicated to repaying our loans. Unfortunately, between our other debts that we’ve incurred while adding home improvements, getting married and a considerable auto accident that seriously injured Gina and myself in December of ’07, it is now clear that we cannot afford this house on these current terms. >> We have stopped using credit cards and are trying in vain to payoff all debtors. We have attempted to find second jobs but to no avail. All frivolous expenses are now gone.My mother has generously loaned us money (several times) to help us keep up with our debts but our situation is rather grave and we are seeking your help in this matter. I’m afraid that short of bankruptcy this is our only chance.>> We are hoping (in a loan modification) to obtain a fixed interest rate of 4.5% or better and a possible reduction of the principal balance that might reflect the current market value. We greatly appreciate your attention on this very important matter

06-24-2009, 12:18 PM	#96 (permalink)
jbrannam Junior Member Join Date: Jun 2009 Posts: 4	Re: Examples of a Hardship Letter Would greatly appreciate review/critique of my hardship letter. Thanks! Please give the utmost consideration to our request for loan modification under the Making Home Affordable modification program. I would like to describe the circumstances which led to our financial hardship. In October 2005 my husband required surgery for carpal tunnel syndrome. Due to the lengthy delay in the worker’s compensation process and his recovery from surgery, he was not released to return to work until November 2006. In December 2006 he was hit by a highway patrol vehicle while standing on the highway performing chain control duties for his employer, CA Dept. of Transportation. The impact caused multiple minor injuries that have required multiple surgeries over the past two years. Initially he was able to maintain his level of income by supplementing the workers comp pay with his large balance of accrued leave credits, although he no longer received the approx. $10,000/yr. in overtime he’d earned prior. After about a year, his income was reduced by 1/3 and then finally in Dec. 2008 he hit the two year cap and was no longer entitled to any payment from workers comp. Until recently we were able to continue to fulfill all of our obligations in a timely manner and enjoyed an excellent credit rating and payment history despite occasionally having to resort to accumulating installment debt for necessary and ordinary expenses. I returned to work for the State of CA in Aug. 2006 in order to maintain health benefits and steady income. We have compensated for the income reduction by selling one of our vehicles, and eliminating vacations and unnecessary purchases among other things. We’ve identified further reductions in monthly expenses that can be made and are working diligently to save our home from foreclosure. We are confident, that given the opportunity for a loan modification, we can resolve the issues that caused this financial distress. I am fortunate that my employment with the State of CA is very secure. Recent changes to my classification have increased my monthly salary to $3953/mo with a $2400 annual pay differential (bonus) and I typically earn $1200/yr. in overtime. I will be receiving an annual 5% salary increase in Sep. 09. which will increase my gross pay to $4151/mo + $2400 bonus. I also expect to be receiving a promotion in the next 12 months which will increase the salary for my classification to $5400/mo. In addition, I still retain a real estate license and have earned about $3000/yr. the last couple years. My husband will be returning to work in the next few months as well. We’ve filed Chapter 7 bankrutpcy to resolve the installment debt and expect the discharge mid-July. We will have no monthly obligations outside our household expenses except for a vehicle loan that we’ve determined we can sell if necessary. We are committed, honest, hardworking people who’ve found themselves in a very difficult situation of which so many aspects are beyond our control. It’s been devastating for us to resort to these means, with our only goal being to save our home. Our family has established deep roots in our community and our home has given us sanctuary in an extremely stressful time. We’ve come so far, and are so close to resolution, that we’re confident it would be in the best interest of everyone for a loan modification to be approved. Thank you for your time and consideration.

06-24-2009, 12:42 PM	#97 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,682	Re: Examples of a Hardship Letter jbrannam, The letter looks good............to the point __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

06-30-2009, 10:42 AM	#98 (permalink)
prisonerno6 Junior Member Join Date: Jun 2009 Posts: 2	Examples of a Hardship Letter Would you mind critiquing my letter? Thanks! Lender Name: BOA 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 fall behind is the period of unemployment I had during 2007 through 2009. On December 7, 2007 the company I was working for shutdown operations and I was unemployed until April 7, 2008. During that time I was able to continue payments on our two (2) loans. Then on August 29, 2008 I was laid off when operations were moved to China. I remained unemployed until May 11, 2009. During that period of unemployment I was able to make payments on the loan until January 2009. From January 2009 till May 2009 was a difficult time and we were unable to make monthly payment amounts of $3198 and $782 and we feel that a loan modification would benefit us both. Our situation has gotten better since I have started working once again and we feel that a loan modification would benefit us both. We would appreciate it if you would work with us to lower the terms of our two (2) loans so we can keep our home and also afford to make amends with your firm. Modifying our two (2) loans to one (1) 30 yr fixed low interest rate, adding the delinquent amount back into our principal and lowering the monthly payment amount would truly help us out and keep us from foreclosing 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,

07-01-2009, 07:46 AM	#100 (permalink)
prisonerno6 Junior Member Join Date: Jun 2009 Posts: 2	Re: Examples of a Hardship Letter Thanks for the input beelzebub! Does this make more sense now? See blue. 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 fall behind is the period of unemployment I had during 2007 through 2009. On December 7, 2007 the company I was working for shutdown operations and I was unemployed until April 7, 2008. During that time I was able to continue payments on our two (2) loans. Then on August 29, 2008 I was laid off when operations were moved to ffice:smarttags" />China. I remained unemployed until May 11, 2009. During that period of unemployment I was able to make payments on the loan until January 2009. From January 2009 till May 2009 was a difficult time and we were unable to make monthly payment amounts of $3198 and $782. I have started working once again but with finances extremely tight and since we missed 4 payments totaling $14,356 and without a modification, it would take us 4.75 years to make the loan current. We would appreciate it if you would work with us to lower the terms of our two (2) loans so we can keep our home and also afford to make amends with your firm. Modifying our two (2) loans to one (1) 30 yr fixed low interest rate, adding the delinquent amount back into our principal and lowering the monthly payment amount would truly help us out and keep us from foreclosing. 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, Borrower’s Signature Yes! Please God Help Us All!

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