Loan Modification Request Letter Help (WAMU / Chase)

[jgirl]

Hello,

I have created the following letter to WAMU/Chase regarding a modification request. We have a couple of extra houses because we were building a smaller house to move into when all of this disaster struck. We are now stuck with all of them and in the hole about $750k total equity loss.

We are asking each lender for a modification to the loan terms. Aurora Loan Services has not turned us away yet and our file is actually with a processor right now. We have an option ARM with them.

Westcoast Bank is horrible and won't even talk with us so we hired an attorney to help with that one.

This letter is to WAMU / Chase and is in regards to our primary residence. We have a first and a second on this house and have been advised to do our best to keep it so there is no deficiency settlement later.

This modification request is the most important out of the three. Currently, our mortgages take 77% of our income. We are trying to get the loans modified enough so that it is about 51%. I know that is still a bit high, but have been in a worse scenario before so know we can handle it as we are frugal people.

So, we have written this letter. It is rather lengthy, but our situation is complex. Please provide any helpful feedback. It is so important that this go through.

Thank you in advance for your help!!

RE: Loan modification request for account number:

Dear Washington Mutual / Chase:

We are writing to you today to request a loan modification. We have entered into a financial crisis and want to do all we can to repay our debt to each and every lender who has trusted us.
Almost two years ago, we decided to build a new, smaller home for ourselves with the intention of selling the larger home we currently live in. Before the smaller home was complete, the housing market took a turn for the worse. By the time building was complete, we were unable to sell either house for anything close to what we owe on them, leaving us paying very high mortgages on both properties. Prior to this, we also bought another house because our mother was going to move here, sell her house and buy ours. Well, the market turned bad before she could do that. So, we are now stuck with three homes, all with very high mortgage balances and interest rates.

In the midst of all of this, Mr. lost his job. He was able to get a new one, but it pays a lot less than the prior position. We are struggling.

Two of the houses have tenents in them, but rents have gone down drastically so we are supplementing them each month.

On top of all of this, we found out that there was an error on our 2005 taxes and had to pay the IRS a very large sum of money. And, our baby was born prematurely and incurred quite a bit of medical expenses while in the NICU the beginning of 2008.

While speaking to a bankruptcy attorney and a financial planner, we discovered that we can make it through these rough times if we modify our loans. We have also learned that the house we currently live in, the one we are writing about to you today, is the one we need to stay in and focus the most on because we are so far in the hole with equity and it has two loans on it. We would also very much like to keep this home. Since we started building that smaller place, we got pregnant and had a baby, something that we were told would never happen due to a medical condition I have. It was definitly a blessing. The larger house works out well for the new, larger family.

We are not behind in any payments yet. We have been told that this is actually a negative factor for us and that banks are not really helping people who are on time. We are responsible people looking for help before it is too late. You can see from our financial outline that trouble is on its way for us if something is not done quickly. The only reason we are not behind on payments yet is because we have a little bit of a savings account. Its balance has been diminishing rather quickly. We need to slow it down before it is all gone. We also need to be sure there is a little left over in case of another financial setback.

By looking at our financial situation, you will see that we are barely making ends meet. But, we are holding on for the time being. Mr.’s cut in wages is making it harder to do so.

Mr. and I both have terrific credit scores and care a great deal about our credit rating. We don’t have any debt outside of real estate debt. We use our money wisely and cautiously. We are responsible people in a bad situation, which is why we are asking for your help. We have submitted modification requests to each mortgage lender. If we all work together, Mr. and I can fullfill our obligations and pay everyone back.

We are truly trying to get through these rough times as best we can. We have come this far, paying all of the house payments and financial obligations each month. We don’t want to give up now so we are asking for your assistance by way of a loan modification. If we can reduce our monthly expenses, we can get through this rough time and repay all of those who have lent us money.

We have included the required paperwork and look forward to your favorable response.

Sincerely,

[Pedro]

just my opinion...

the letter might be a little too in depth, this house, that house, mother's house.

it seems like the ones who read these letters dont care and probably dont own homes to boot. i have chopped your letter a bit and tried to stream line it a bit to get that idea, again "my opinion" i think straight to the point and no elaborate details on why you got here.

basically "i lost my job, got a new one with less pay" "housing market crashed, cant sell investment homes"

but forgive me if im talking out of place on this......






Dear Washington Mutual / Chase:

We are writing to you today to request a loan modification. We have entered into a financial crisis and want to do all we can to repay our debt.

two years ago, we decided to build a new, smaller home for ourselves with the intention of selling the larger home we currently live in. Before the smaller home was complete, the housing market took a turn for the worse. By the time building was complete, we were unable to sell either house for anything close to what we owe on them, leaving us paying very high mortgages on both properties

In the midst of all of this, Mr. lost his job. He was able to get a new one, but it pays a lot less than the prior position. We are struggling.

Two of the houses have tenents in them, but rents have gone down drastically so we are supplementing them each month.

We are not behind in any payments yet. We have been told that this is actually a negative factor for us and that banks are not really helping people who are on time. We are responsible people looking for help before it is too late. You can see from our financial outline that trouble is on its way for us if something is not done quickly. The only reason we are not behind on payments yet is because we have a little bit of a savings account. Its balance has been diminishing rather quickly. We need to slow it down before it is all gone. We also need to be sure there is a little left over in case of another financial setback.

We are truly trying to get through these rough times as best we can. We have come this far, paying all of the house payments and financial obligations each month. We don’t want to give up now so we are asking for your assistance by way of a loan modification. If we can reduce our monthly expenses, we can get through this rough time and repay all of those who have lent us money.

We have included the required paperwork and look forward to your favorable response.

[newjersey24]

I agree with Pedro...

Simple and straight to the point is better. Especially when some other guy who doesnt know you reading a request on your behalf.

My two cents!

Originally Posted by Pedro

just my opinion...

the letter might be a little too in depth, this house, that house, mother's house.

it seems like the ones who read these letters dont care and probably dont own homes to boot. i have chopped your letter a bit and tried to stream line it a bit to get that idea, again "my opinion" i think straight to the point and no elaborate details on why you got here.

basically "i lost my job, got a new one with less pay" "housing market crashed, cant sell investment homes"

but forgive me if im talking out of place on this......






Dear Washington Mutual / Chase:

We are writing to you today to request a loan modification. We have entered into a financial crisis and want to do all we can to repay our debt.

two years ago, we decided to build a new, smaller home for ourselves with the intention of selling the larger home we currently live in. Before the smaller home was complete, the housing market took a turn for the worse. By the time building was complete, we were unable to sell either house for anything close to what we owe on them, leaving us paying very high mortgages on both properties

In the midst of all of this, Mr. lost his job. He was able to get a new one, but it pays a lot less than the prior position. We are struggling.

Two of the houses have tenents in them, but rents have gone down drastically so we are supplementing them each month.

We are not behind in any payments yet. We have been told that this is actually a negative factor for us and that banks are not really helping people who are on time. We are responsible people looking for help before it is too late. You can see from our financial outline that trouble is on its way for us if something is not done quickly. The only reason we are not behind on payments yet is because we have a little bit of a savings account. Its balance has been diminishing rather quickly. We need to slow it down before it is all gone. We also need to be sure there is a little left over in case of another financial setback.

We are truly trying to get through these rough times as best we can. We have come this far, paying all of the house payments and financial obligations each month. We don’t want to give up now so we are asking for your assistance by way of a loan modification. If we can reduce our monthly expenses, we can get through this rough time and repay all of those who have lent us money.

We have included the required paperwork and look forward to your favorable response.

[Audrey&GunnersMama]

I disagree, the more in depth you are about your current situation, the better your outcome may be. Your personal situation has a lot to do with the type of modification you're offered.

The "people" reading your request DO read it. Here are some misconceptions:

--They take your financials and plug them into an optimizer system that will specifically tell the "negotiator" what modification will give the borrower at least100-200+ per month, while still generating revenue to the bank.

--The negotiator negotiates with the investor, the optimizer program, and quality assurance, NOT the homeowner.

-- That hardship letter is the biggest negotiation tool you've got. Such a common misconception that your negotiator will call you. They will not, the CARE team is all you got and the closer to your file will USUALLY, but not always call you. Without being in depth you get a completely generated optimized loan mod, with no personalized consideration. A good hardship letter is the difference between a 1%-3%-5% fixed step rate mod and a 3%-4.5%-5.6% balloon (random numbers, not nec. what you WILL get)

With your situation, it's very likely that you would get a great step rate program, especially if you're atemping to sell a few of these properties at some point, and if they're all with wamu.

As far as being past due, That is completely up to your investor guideline, which the CARE team (loss mit) can not disclose, but you can ask customer service about or look on your original loan docs and begin researching to find out.

Hope this helps many people, not just yourself!

[Worried]

Hello Audrey&GunnersMama,

I received a loan modication last year and having a hard time keeping up with the payments. They are higher than prior to my modification. Do you know if Wamu aka Chase would even let me do a 2nd loan modification even though it has been less than one year?

Thank you.

[Audrey&GunnersMama]

Sorry I've vanished, I have a new position processing Trial Plan Modifications-- WaMu would let you reapply. However, depending on your investor, it's unsure whether you could be approved for a 2nd. If you're Fannie or Freddie you're almost entitled to one, wamu and wamu securitized loans will try, bank of america invested and wells fargo invested are GENERALLY pretty good about a second mod within a year but you will have to REALLY prove hardship, and if you happen to be invested by Deutche bank-- unfortunately, they will not do a second modification. They are hard enough to even get a first one. I would definately call and find out what is possible.

[Worried]

Thank you.