Hardship Affidavit Review for HAMP Package

[dbjoy]

Hello all. I'm getting my HAMP trial package ready to send in tomorrow and I would like for the forum readers to review what I have stated for my Hardship Affidavit. This affidavit replaces the hardship letter required by others. Please provide comments on what I've written so far.....Thank you!

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AFFIDAVIT INFO FOR SUBMITTAL:

Item 1: Reduced Income – In January 2007 my husband was laid off from ******. He was making $1600 gross / week. He was hired by ******** in May 2007 at a reduced income of $1400 gross / week. He has been with ****** since that time. I was laid off in January 2009 from my job of 7.5 years with ******** with an income of $960 gross / week. Since that time I have been collecting unemployment at a 47% reduction of income of $450 gross / week.
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Item 3: Increased Expenses – Because of my husband’s salary reduction in 2007, we increased our federal withholding deductions in order to make ends meet. We continued this pattern into 2008 which resulted in Federal Taxes being owed to the IRS in the amount of $6,989 and taxes owed to the State of California in the amount of $1,195. We were unable to pay these amounts in full so we now will be accruing interest and penalties because of having to make payment arrangements.
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Item 4: Cash Reserves – Our cash reserves have dwindled down to less than $1,000 due to using these monies to keep our mortgage current.
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Item 5: Excessive Monthly Debt – Since my job loss, cash reserves depletion and incurring the monies owed for Federal and State Taxes, we are on the brink of overextending our credit.
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I'm really leary of the IRS and State Tax stuff because I believe the way they will see it is that we were stupid to increase our number of deductions, which we proabably were! Thought we would have enough expenses (property taxes, etc.) to cover. As they say.....hindsight...Also, am I using the correct terminology for the "increased number of deductions" or should it be "dependents"?

Anyway, thanks in advance for your help!!

[lennox]

I don't think you need to worry about increasing your dependants for with holding.

The only thing I might suggest is to get the payment arrangment set up with the IRS and State immediately!

In my opinion, I would have this done before you even send in your HAMP package. The last thing you want your servicer to think is that you owe back taxes and the IRS is in a position to put a lien on your home; or garnish your wages.

I worked with the IRS on a payment arrangement in 2007, and they were (this is shocking), actually very good about setting up the monthly payment and working with us within our debt and income. On the flip side, we have a friend who did not contact the IRS about payment arrangements and the IRS did garnish their wages and they did not take into consideration how it would affect their living expenses or other expenses for that matter.

Long story short....you are better off contacting them and asking them to work with you, versus them contacting you!

Actually come to think of it.....going back to your hardship letter....I think I'd leave the whole IRS part out completely. IMHO.

[lennox]

Whoops...I apoligize...it looks like you have made payment arrangements. I should have read closer. I still though would not mention anything about the IRS in the hardship letter.

T

[dbjoy]

Originally Posted by lennox

Whoops...I apoligize...it looks like you have made payment arrangements. I should have read closer. I still though would not mention anything about the IRS in the hardship letter.

T

Thanks Lennox. I've already spoken the my HOPE counselor about the IRS thing which will be included in my Financial Worksheet. How do you think I should explain the increased expenses and excessive debt scenarios without using the term 'IRS'? I'm getting worried again - ARGH!

[lennox]

This is just my opinion...but I would just mention the decrease in salary in the hardship letter. You've included the IRS and State payment in your financial worksheet....so you're not lying or trying to hide it; I just personally wouldn't bring it up in my hardship letter, especially when a decrease in salary justifies as a hardship on its own. When you get assigned a negotiator, then I'd bring up the IRS situation if they ask.

But this is just my opinion...But again, if it were me...I would not mention it in the hardship letter.

You are correct....it is so stressful...and it just feels like (for me personally) anything I say can will be used against me...

[Hopefull2009]

It looks like you're trying to fit into 3 hardship categories. I'd stick with reduced income for the affadavit and leave it at that?

[dbjoy]

Okay. I'll just go with Item 1-Reduced Income and Item 4-Cash Reserves Insufficient. Thanks for the comments all and Good Luck to everyone. We're gonna need it!!

[Hopefull2009]

Okay. I'll just go with Item 1-Reduced Income and Item 4-Cash Reserves Insufficient. Thanks for the comments all and Good Luck to everyone. We're gonna need it!!

I think are supposed to "pick" one hardship.

[dbjoy]

Hopefull, I just read the instructions again and it gives the option of checking one or more events that contribute to my difficulty. So I'm gonna let them know that I'm also cash-strapped at this point because of job loss. Sound good to you?!? I'm thinking that more info is better than less at this point. Except for the IRS stuff, I guess. I'm confused.

[ama125]

For HAMP you definitely have the option of selecting more than one hardship, one might be the biggest contributor, but I believe that you should indicate all that apply to you. It only serves to illustrate that you do need assistance and provides the reason for falling behind or chance of that happening soon.

[dbjoy]

REVISED VERSION...Does this look better?!?

Item 1: Reduced Income – In January 2007 my husband was laid off from *** . He was making $6400 gross / month. He was hired by *** in May 2007 at a reduced income of $5600 gross / month. He has been with Presidio since that time. I was laid off in January 2009 from my job of 7.5 years with *** with an income of $3840 gross / month. Since that time I have been collecting unemployment at a 47% reduction of income of $1800 gross / month.
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Item 4: Cash Reserves – Our cash reserves have dwindled down to less than $1,000 due to using these monies to keep our mortgage current.
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Item 5: Excessive Monthly Debt – Since my job loss and cash reserve depletion, we are on the brink of overextending our credit.
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My husband and I have been responsible homeowners. Our number one goal is to keep our home and we would really appreciate the opportunity to do that. We are trying to be proactive because we want to preserve our good credit rating as well as our most important asset, our home. We desperately want to keep our family in our house as we love the security of our neighborhood and school system that my child is in. We want our child to grow up here. Please consider us a candidate for a loan modification.>>

I am avidly seeking and applying for jobs daily. My hope is to secure a job before this trial period ends.>>
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I must say that the housing counseling services provided by HOPE has been a very helpful experience and in the months to come, we will be implementing the advice given to us in the financial report generated by our HOPE counselor.>>
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Thank you in advance for your time and consideration in this matter. We are looking forward to working with you to resolve this situation.
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What do you think? Enough, too much, not enough??? Sending in package today!

Thanks readers!!

[dbjoy]

Just dropped off my package at UPS. Countdown begins and fingers are crossed!