Hi All,
I'm a newbie here who needs some help with my Hardship Letter posted below. ALL comments/suggestions/ideas are welcome.
Thanks
Loan Perfection B6-YM13-01
National City Mortgage
P. O. Box 1820
Dayton, OH 45401-0422
(My Name)
(My Wife’s Name)
(Our Home Address)
(City & Zip Code)
Dear Sir/Ma,
AFFIDAVIT OF HARDSHIP (Loan #: 0005******)
We proactively contacted you to request your assistance in modifying our mortgage because even though we have not defaulted, we are finding it increasingly difficult by the month to keep up with the payment due to the prevailing economic situation and a series of unfortunate circumstances that have converged to substantially impair our financial health. Towards this end, your trial offer to reduce our payment amount to $1,519.20 while you work to modify our mortgage is a God-sent that is sure to help keep us in our home.
Immediately following, you will find a detailed itemization of the causes of our financial problem which should provides further explanation for some of the items checked on page 1 of Form 1122:
1. On December 2007, I lost my job at K---- and with that 50% of my income.
2. The taxicab business I bought in June 2007 with the money from our 2007 refinancing; the only source of income I had left, floundered seriously due to the economic problems of 2008.
3. A. Not having the option to close up shop since I had $80,000 worth of equity that I took from my house already invested in buying the business, I worked 10-14 hours 6 to 7 days a week just to make the business work.
B. Also, I secured a $10,000 line of credit from Bank of America to assist in making happen.
4. This resulted in me spending 2008 paying off ballooning debt (from running at a deficit).
5. To compound our problem, our tenants unexpectedly moved out at the end of February 2009 causing an additional loss of $1,333.33 in income at the most ill-opportuned time (see attached Notice of Intent to Vacate Apartment; the FedEx Airbill used to mail it, and the $1,070.81 money order receipts used to refund the balance of their Security Deposit).
6. Additionally, New York City increased real estate taxes, first in the 4th quarter of 2008, then in the 2nd quarter of 2009 for a total of $346.40 per year (an increase of roughly 10%).
7. A. The Department in charge of regulating cab business in New York City (Taxi & Limousine Commission—TLC) came out with a new set of rules to govern the business that are so draconian, after my cab business was screened, I was left with only 14 cabs out of about 40 cabs (see the attached list of my 14 TL&C approved cars. I have also included printouts of 6 relevant internet links dealing with the issue). To make this understandable, that much reduction in the number of cabs meant a loss of about $2,000.00 per week in income for me.
B. The painful thing is that this devastating rule change by the City is in addition to the one enacted a month earlier (in June) by the New York State requiring all cabs to charge taxes as a way to help the State balance its budget (see the printout of the webpage:
Black Car News - The limousine industry?s leading resource for breaking news, informative articles and information about the latest products and services available to operators).
8. To worsen our financial situation, a competitor sued my company in early August for $10 million leaving me no other option than to retain the services of a lawfirm. The retainer fee alone is $5,000.00 (see copy of check paid in August 28th) on what conservatively is being estimated to end up costing at least $25,000.00 in legal fees.
9. Lastly, at the beginning of October, we powered up the Boiler only for it not to start. We had to have it replaced at a cost of about $4,700.00. Financing was done with 60% down (see attached copy of check for $2,700.00), $85.00/mth for 2 years.
B. During the installation, an energy-use review was done for our house which revealed that we were using way too much energy because, having been built in the 50s, our house is without any insulation. The attached HOME DEPOT receipts totaling about $2,000.00 shows purchase of materials we have made to correct the problem. The best labor-cost estimate we have gotten for insulating the 2 floors of our house is $7,000.00 which we are also looking to finance.
As you can see from the list, it has been a financial onslaught so severe that since June, to make our mortgage payments, we have been drawing on our savings to come up with the cash to make the payments on time. Consequently, our savings is now down to an all-time low of about $3,000.00 from a combined total of more than $30,000.00 as recently as just 4 months ago. But with a mortgage of $2,600, even with expenses cut to the bare bones, it has been impossible to find any relief except to ask for help in modifying our loan before we are financially out of options.
On our part, I intend to again go back to work with the 14 cabs I am now left with just like I did when I bought the company back in 2007 with just about as many cars but was able to build it up to about 40 cars within two years through hard work. I am confident I can do the same by recruiting new drivers and working with some of the expelled drivers to meet the new TL&C requirements. Additionally, my wife has begun training as a seamstress so that she can take on a second job to boost our income.
However, we would need time to allow us to get all these done which is why we are asking for your assistance. From researching the numbers, we are confident that if our new loan amount stays close to the trial amount of $1,519.20, it will give us the needed break to recuperate financially and stay in our home for which we have dedicatedly made monthly payments these last 6 years.
We have enclosed all our financial information to help you process our application. Based on these information, you will see that we currently spend in excess of 55% of our income on the mortgage/insurance/taxes (with the repairs needed this year, we are already over 70% of our income just on the house and associated costs). At this pace, without the modification we are requesting, staying afloat is almost impossible even though you will see that we have done everything to minimize our expenses because it is most important to us to keep our home.
You may contact us at: (***) 723–**** for any question you have. We thank you for your time and consideration in helping us modify our mortgage.
Sincerely,
---------------------------------------(My Name)
---------------------------------------(My Wife’s Name)
LINKS (a printout of each link is attached for your convenience): 1. Taxi & Limousine Commission website announcing the new rules (first link on page):
NYC Taxi & Limousine Commission 2. TL&C webpage dedicated dealing with the new rules in detail (through a list of 10 different links):
New For-Hire Vehicle Rules 3. The 11 pdf pages containing just the summary of the new rules:
http://nyc.gov/html/tlc/downloads/pd...ule_change.pdf 4. Two reactions summarizing the devastating effects of the new rules:
A. It will be the “funeral” of taxi business in New York City:
Voices That Must Be Heard: Taxi and Limousine Commission planning controversial new rules - New York Community Media Alliance B. It will cause bases (or taxicab companies) to “close”:
| NSLA | - 
Connect with Facebook
Help Needed With National City/PNC Hardship Letter 
Linear Mode
