Need help with hardship letter...

[mkcalder]

Hi, I am new to the forum and let me just say, i dont know what i would have done without all the information provided here!

My loan is with Wells Fargo. They told me I prequalified for the streamline modification. At that time i was 3 months behind on payments and had no idea what the streamline mod was. So in a panic, my wife and i used money from a credit card to get caught up. Here is the my hardship letter:

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that has caused me to become delinquent on my mortgage payment in the past. My wife and I have done everything in our power to make ends meet, which has now brought us up to current standing but it is just a matter of time before it snowballs all over again. Our main goal is to keep our house and would greatly appreciate the opportunity to do that.

The main reason for falling behind is that my income has been reduced from $2000 a week to $1300 and my wife lost her job due to the economy. We had fallen behind 3 months on our mortgage. In an act of desperation for fear of losing our home, we borrowed $12,000 from a credit card to bring us current, but it is just a matter of time before we fall behind again. At this time we have exhausted all of our income and resources and are turning to you for help. We are trying to be proactive.

My pay cut occurred about 8 months ago due to overtime no longer being available. I used my savings to keep us a float but now that that is exhausted we have nothing left. Come this February we will not have enough to make our payment. Our home declined in value and still needs major work. This has made it impossible to refinance or even sell. On top of that, it is an interest only mortgage. Our rate will go up this October.

I feel that a loan modification would benefit us both. We would appreciate if you could work with us to renegotiate our mortgage payment so we can keep our home and also afford to make amends with your firm.

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,

Is it to much, not enough?

Any advice is appreciated

[Dan Bailey]

mkcalder,
Glad you found the forum and posted. Welcome!
The letter sounds good, its not too long at all. You may want to include a short sentance or section on how, with a modification, and changes in spending habits or adding some income,(something positive) you will be able to keep up with the payments. They like to hear a "what a mod will do to actually help" kind of statemet. Other than that it looks good!
Keep us posted, hang in there and good luck!

[mkcalder]

Dan,

Thanks for the reply! That's a great point! I will make the amend and repost later. Thanks again for the advice!

[mkcalder]

Here is my letter with the amendment:

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that has caused me to become delinquent on my mortgage payment in the past. My wife and I have done everything in our power to make ends meet, which has now brought us up to current standing but it is just a matter of time before it snowballs all over again. Our main goal is to keep our house and would greatly appreciate the opportunity to do that.

The main reason for falling behind is that my income has been reduced from $2000 a week to $1300 and my wife lost her job due to the economy. We had fallen behind 3 months on our mortgage. In an act of desperation for fear of losing our home, we borrowed $12,000 from a credit card to bring us current, but it is just a matter of time before we fall behind again. At this time we have exhausted all of our income and resources and are turning to you for help. We are trying to be proactive.

My pay cut occurred about 10 months ago due to overtime no longer being available and my wife lost her job in November of 2008. So we are down to one income plus unemployment. I used my savings to keep us a float but now that that is exhausted we have nothing left. Come this February we will not have enough to make our payment. Our home declined in value and still needs major work. This has made it impossible to refinance or even sell. On top of that, it is an interest only mortgage. Our rate will go up this October.

I feel that a loan modification would benefit us both. We would appreciate if you could work with us to renegotiate our mortgage payment so we can keep our home and also afford to make amends with your firm. By adjusting our spending habits and with a lower monthly payment, I feel we could improve our situation and catch up on other bills as well.

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,

[Moe Bedard]

Looks good.............

Wells Fargo Loss Mitigation
1-877-216-8448



Please keep us posted on your progress............

[Pedro]

my two cents....

careful with their phone tactics, i have been going in circles with them since December. I tried the 3 step refi but i knew i wouldnt qualify because of the house prices falling. so now im trying for the loan mod.

go over your monthly spending and then go over it a couple more times. you need to be on top of your game when it comes to "where your money goes". everything from credit cards to lunches or that monthly saturday night dinner.

it seems to me their debt ratio calculators favor them more than it favors you so if its on your bank statement then in my eyes it should be justified-just dont go overboard. they will want proof for all your monthly liabilities.

anyways im trying NACA and they are pretty thorough and very understanding. im hoping the offer they submit has some weight behind it!!

good luck to you