I revised the letter from the one I posted earlier adding a little more detail about our situation the only thing I changed was the 2nd paragraphy
To whom it may Concern,
I am writing this hardship letter to explain our unfortunate circumstances which have caused us to reach out to you for a loan modification under .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.
February of 2009 we started having problems financially due to my husband having a shortage in income. He was not making the money he use to which caused us to fall behind in bills by paying late every month. (husbands name) employer filed bankruptcy which cause caused our income to go down because the work was not there and for a short period of time they did not pay the employees. Things got better income wise and ever since then we have been playing catch up for the bills we where behind on. Even though our mortgage was not late according to the bank it was behind in our checkbook. Finally things have caught up to us between debt, monthly expenses, school we are having trouble making our mortgage payments. Now, itís to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.
Currently we owe 109,000 on our first mortgage, we also have an equity line of credit which we owe 100,000. Total we owe 212,000 on the house. . The house was last assessed at 78,000. Most homes in the neighborhood have been selling around 80,000. We have an adjustable rate on the mortgage as well as the line of credit. Is it possible to have my current adjustable rate mortgage converted to a fixed rate? The loan is schedule to adjust again in October 2010. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.
We have been cutting down expenses in hopes to help monthly mortgage and utilities. We have cancelled monthly personal training membership, stopped paying to have water delivered monthly, health insurance, no longer eat out and cut down on our food shopping weekly. We are also working with our credit card companies to become current and pay down the debt. We have contacted a debt consolidation company which the making home affordable plan referred us to and have received counseling.
We are 2 months behind on our mortgage. We have paid our mortgage on time for the past 5 yrs even when the pay between the equity line of credit and the mortgage reached $1700 total a month. We want to become current with it and stay in the house. We think that this loan modification would be a great aid in this.
We are looking forward to taking the next steps and hopefully getting approved for a loan modification.