| GMAC Self Employed Help! Hardship Letter
Hello, I posted this a few days ago but it started out wrong and I asked the moderator to remove my original post. I'm self employed and looking for any others who may have had a successful modification themselves being self employed.
Also, any contact information would be greatly appreciated.
Any advice on my hardship letter would be greatly appreciated.
Name:
Address:
Lender Name:
Loan #:
To Whom It May Concern:
This letter is to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we fell short for a time. We are requesting that you consider working with us to modify our loan in a manner that would allow us to resume payments.
The circumstances that have led to us being behind are a combination of: a) reduced income, b) medical bills, c) damage to our home d) my wife being involved in an auto accident to which she was at fault.
All of these events/circumstances occurred within the past three months. The greatest of these factors that caused us to be late is the reduction of income.
I have been successfully self employed in the custom woodwork and fabrication business for seven years. However, from the second half of October 2008 to the end of December 2008, work slowed to almost nothing. Then several accounts receivable became delinquent and all my efforts to collect fell through. Much of my work is tied to the construction industry, which is in a downward spiral in my area so getting new contracts became extremely difficult.
In early December we had some medical bills because my wife had to receive emergency medical attention for a burst cyst in her abdomen. Due to the fact that we are uninsured, this set us back even further.
To add to this our furnace quit working in November. This we have yet to fix as we are trying to get the company that installed our furnace to take responsibility. So, we've been using electric space heaters to heat our home.
Then on the first of January my wife got in a minor auto accident that set us back even further due to the insurance deductible.
Despite the setbacks mentioned above our situation has begun to improve dramatically. We have worked very hard to increase work through new products and cut unnecessary costs. My wife has begun working with me in my business to help generate more income. I have been able to secure some contracts and collect payment from some of my clients who were past due. Our situation has improved to the point where we are now in a position to resume payments. However, work is definitely much slower than before so to make up the past due amount is not possible at this time and looking at our budget it would greatly help to have the payment or principle reduced to reflect current interest rates.
We have worked our budget to only included the bare necessities. We've dropped our home telephone. slashed costs to bare minimum in every area.
Under our current terms our Principle and Interest payment is $2,004.17, with a escrow amount of 210.73 for a total of $2,214.90, which, up till the time of the economic hardships mentioned above, has been completely affordable by our family with respect to our income and secondary credit obligations. However, with the recent economic downturn my intent is to either have our interest rate lowered, have a maturity date extension, a forbearance on payments or a combination of afore mentioned. We will do whatever it takes to work out an arrangement that works for both of us so that we may keep our home and fulfill our obligations.
I have spoken with several Realtors in my area and home values in my city have declined 19.2% over the last year. This can be confirmed at
We greatly appreciate the opportunity to bring our payments current. I built this home from the ground up so I am very much attached to it and would like to do whatever I can to keep my home. We would appreciate if you can work with us to adjust our payment to a slightly more affordable level so we can keep our home and 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,
Signature
Date
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