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Jonathan Gillham (Hardship Letter Sample Help) Mortgage and Lending

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Jonathan Gillham
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The hardship letter is basically an outline of the chain of events that led to your current financial situation. It explains, for example, how your loss of a job or some other financial incident has caused this problem. In other words it will convey to the loss mitigator, the lender's representative, how you go into the problem and what you want the lender to do to help you. It also will state to the lender what you are willing to do to help out the process.

 

The best way to write a letter of this kind is by following a sample hardship letter. This is prudent because not all of us are good writers and so we need all the help we can get. In addition, an example of a hardship letter can give a point-by-point outline of what we need to convey to the loss mitigator. Because they are busy and they don't want to wade through your autobiography, it has to be a concise story of events.

 

Sample Hardship Letter

Type of Letter: Loan Modification

1st/2nd/Heloc: 1st mortgage

Type of Hardship: Reduced income, up-side-down

Property Category: Primary Residence

Lender: Bank of America

 

Loss Mitigation Department

Bank of America Home Loans Servicing

P.O. Box 10219

Van Nuys, CA 91410-0219

 

To Whom It May Concern:

Re: Request for Loan Modification for property at ________________________________ Loan Number: ______________ I am writing in the hopes that you'll approve a home loan modification plan that will help me avoid foreclosure. I have owned this home for __ years and __ months and worry that this year will be my last year of homeownership unless we can work something out.

Hardship:

While I am still very grateful to have a job, job security is a huge issue for me in the current economy. My company is on the verge of huge layoffs and pay cuts, which will affect me greatly. On top of this, the value of my home has dropped dramatically along with the crash in property values throughout the state. While I bought the home for $_____ in , it is now only worth about $_____. I was planning on the housing market improving when I bought the home, and thinking in about _ or __ years, I could re-sell the house and put that money into investments to help my retirement. The hopes of this happening now are very small. I am now and working hard to makes ends meet. I have grown very fond of this home and would like to be able to keep it as long as possible.

My current debt-to-income ratio is __%, which is clearly not sustainable.

Status of payments/ Ability to pay going forward:

I am current on my payments right now, although I have had to rely on the grace period very often. I won't be able to afford the current amount anymore.

I have cut costs as much as possible. I have talked to my employer about getting as many work days in as I can, even if it means working seven days a week. While times are hard for the company, they are still giving me as many hours as they can. I have been researching ways to buy items and re-sell them for higher prices online. I am doing odd handyman jobs here and there, including mowing lawns and light contracting work. I am doing everything I possibly can to stay afloat.

 

Request:

Due to impending loss of income, I am requesting that you modify my mortgage payments to around $___ a month, including taxes, insurance, etc. I have calculated that I could still afford this monthly payment if I was laid-off. If you can reduce my mortgage payment, I feel confident that I'll be able to continue to reliably make the payments. I want nothing more than to keep the property I've had for so long.

I appreciate your consideration.

Thank you very much for your time.

Sincerely,

name, home phone number, cel phone number

Enclosures:

1. IRS 4506-T

2. 2 months of recent paystubs

3. Most recent tax return

4. Monthly housing & loan obligations

 

to see more free sample hardship letters visit Hardship Letter Sample

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I have been helping people avoid foreclosure by providing hardship letter writing tips for the last 4 years. I hope to share my knowledge with this great community.