2nd Attempt at Loan Mod - WAMU Denied 1st attempt

[SingleMomNCA]

Okay LoanSafe Family,

I need your help. I am going to attempt to apply for a Loan Modifacation again but this time I have decided to default on my loan.

I just received a letter from WaMu (actually the only thing I've ever officially gotten regarding my loan mod) which stated that at this time I do not qualify for a modifacation under the MHA program or any other modifacation program that they offer for the reason of "Your hardship is not of a permanent nature".

I can go on and on about how that's a load of crap but it won't change the outcome.

I was hoping that someone could help me in reviewing my hardship letter.

To Whom It May Concern:


I am writing this letter to explain my unfortunate set of circumstances that have caused me difficulty in paying my mortgage timely. I have done everything in my power to make ends meet but I continue to have difficulties and would like you to consider working with me to modify my loan. My number one goal is to keep my home and I would really appreciate the opportunity to do that.


I purchased my home at XXX Main Lane in 2007. At that time I was employed by Alta Bates Summit Medical Center and business was very good. With the salary that I was making and the possibility of a promotion, I was confident that I would be able to maintain my mortgage payments.


My intention after purchasing my home was to refinance to a 30 year traditional loan with a low interest rate after being in my home for one year. Unfortunately, like many others, the downturn in the market caused me not only to not be able to refinance my home but it also caused my employer to reduce their workforce which eliminated my position.


Fortunately, I was able to transfer to another Sutter Affiliate but my income was reduced and the possibility of a promotion was eliminated. My mortgage payment (principal, interest, taxes, insurance and homeowners association dues) well exceeds 31% of my gross (pre-tax) monthly income. I have eliminated my savings and maxed out my credit cards just to make up for the loss of income.


Currently, my mortgage is at a 5 year fixed rate but I am concerned that I will not be able to afford any increased payment considering my current income. I am hoping that there is a way to renegotiate the terms of my current mortgage to avoid the possibility of default or foreclosure on my home. I would appreciate any assistance that you can provide.


I believe that this address the situation I currently find myself in along with many other homeowners.


Thank you for your consideration,

[Evan Bedard]

Hi SinglemomNCA,

Currently, my mortgage is at a 5 year fixed rate but I am concerned that I will not be able to afford any increased payment considering my current income.

In this line you may want to say something like, I'm currently in a 5-year fixed mortgage which I am now struggling to pay due to my reduced income and as soon as the rate adjusts there will be absolutely no way for me to make the payments..

Let them know that you are struggling to pay your mortgage now, if not they may just have you wait until the loan adjusts..

[SingleMomNCA]

Thanks Evan! I'll make some adjustments to include the fact that I am struggling now (which is the truth!)..... Would you suggest that I delete anything from the letter? I know that they want you to keep it to one page - so I'm wondering if I should focus more on my struggle now versus what the "plan" was

[Evan Bedard]

I don't think thats necessary. Your letter is not too lenghtly and it is straight to the point. Good job!

[SingleMomNCA]

Thanks! I'll keep everyone informed as I embark on this journey once again!

[caldwellb02]

Good luck! I too received the infamous "your hardship is not of a permanent nature." Still haven't sent in my rebuttal. What a ridiculous reason!!!!

[BobandArlyn]

Hey SingleMomNCA,

I once worked at Alta Bates on Ashby.

Sorry to hear of your problem. Your letter looks great and I agree with the suggestion to say you are struggling now. My husband and I did that because we are in a 5 year ARM to adjust in 2011. We are going to start a trial mod Nov 1.

Our letter stated that we were struggling and when I retire in December, with only 5 yrs w/the City I work for, I will only have enough income for medical insurance. Costs more to go on my husband's! Crazy huh? Anyway, explaining you are struggling now is I think what got there attention.

Of course, we didn't pay one month on advice of attorney. That could have helped.

Good luck. Stick with this forum. Amazing group of people with an amazing leader and administrators.

[SingleMomNCA]

Thanks all! I will be posting a new thread with my "revised" letter.... I am now 2 months behind and the phone calls are starting to come in almost daily!!!!! Wish me luck and check out my revised letter :-D