Help with hardship letter to Wachovia

[kari91]

I called on the 26th of Oct. and did the interview over the phone and got my packet in the mail on the 29th. I am putting together my hardship letter and was hoping someone might look at it and give me a few pointers. My loan is a pic-a-pay at 7%. I have not been late but only can pay the minimum so am going backwards. House is worth 290,000 and owe 310,00 and growing. Here is my letter:

I have done everything in my power to make ends meet but unfortunately have fallen short and would like you to consider working with me to modify my loan. My number one goal is to keep my home and would really appreciate the opportunity to do that.

My loan is the original Pick-a Pay mortgage that I acquired with World Savings. I was convinced by the Lender at that time that because the economy was so good I could choose this loan, pay the minimum amount and then refinance in the very near future. The economic downturn changed all of this. The value of the home dropped while the outstanding deferred interest continued to grow. In February of 2009 I tried to do a standard refinance and the home value was 290,000.00 while the balance had grown to 310,438.31. The deferred interest total is 16,438.31. The current interest rate is 7%. So I was unable to do a standard refinance into a lower set payment.



The main reasons that have caused me to not be able to pay more then the minimum amount are:
1. The reduction in my income. I work in the construction industry and that is one of the areas affected with the current economic crisis. My current year to date income is 15% lower this year then last year. We have also been required to pay our own insurance, as well as no holiday, vacation, or sick pay.
2. I have also had an increase in the household bills due to my son and his family losing there job and home and moving in with me.
3. I have had a family member with cancer for the last 3 ½ years who passed away 10/12/09.



I am now finding it necessary to use credit cards to make ends meet each month.


I feel that if I were given the opportunity of a loan modification it would benefit us both. It would give me the opportunity to stay in my home and move forward with my mortgage balance. I consider my mortage the most important payment I have.

Thank you for giving me the opportunity of working with you on this.

[imlars]

Originally Posted by kari91

I called on the 26th of Oct. and did the interview over the phone and got my packet in the mail on the 29th. I am putting together my hardship letter and was hoping someone might look at it and give me a few pointers. My loan is a pic-a-pay at 7%. I have not been late but only can pay the minimum so am going backwards. House is worth 290,000 and owe 310,00 and growing. Here is my letter:

I have done everything in my power to make ends meet but unfortunately have fallen short and would like you to consider working with me to modify my loan. My number one goal is to keep my home and would really appreciate the opportunity to do that.

My loan is the original Pick-a Pay mortgage that I acquired with World Savings. I was convinced by the Lender at that time that because the economy was so good I could choose this loan, pay the minimum amount and then refinance in the very near future. The economic downturn changed all of this. The value of the home dropped while the outstanding deferred interest continued to grow. In February of 2009 I tried to do a standard refinance and the home value was 290,000.00 while the balance had grown to 310,438.31. The deferred interest total is 16,438.31. The current interest rate is 7%. So I was unable to do a standard refinance into a lower set payment.



The main reasons that have caused me to not be able to pay more then the minimum amount are:
1. The reduction in my income. I work in the construction industry and that is one of the areas affected with the current economic crisis. My current year to date income is 15% lower this year then last year. We have also been required to pay our own insurance, as well as no holiday, vacation, or sick pay.
2. I have also had an increase in the household bills due to my son and his family losing there job and home and moving in with me.
3. I have had a family member with cancer for the last 3 ½ years who passed away 10/12/09.



I am now finding it necessary to use credit cards to make ends meet each month.


I feel that if I were given the opportunity of a loan modification it would benefit us both. It would give me the opportunity to stay in my home and move forward with my mortgage balance. I consider my mortage the most important payment I have.

Thank you for giving me the opportunity of working with you on this.

Your hardship letter is basically what they are looking for but I would leave out the pick a pay paragraph. You have curtailment of income, the size of the household has changed and there have been health problems, you don't want to sound like its the lenders fault you got into this mess, even though it is, they knew what they were doing and they are not sympathetic to their victims. You would have been better off to take the interest only option as you would not have the negative balence now if you had. That's where the lender makes most of thier money off of you from. Make sure that when you fill out your financial worksheet in the lenders package that you at least break even each month because if you have a monthly deficit they will believe you simply cannot afford the home and they will suggest a short sale.

[kari91]

Thank you for your help, I will do just that.