Sample Hardship Letter # 1

January 24, 2009

RE: Financial hardship - Loan Modification

Account No. 365895459

Mr. and Mrs. John Smith
Address

To Whom It May Concern:

We are writing this letter to you to express our sincere regret for failing to be able to meet our monthly mortgage obligations.

We have tried to stay current on our mortgage by enrolling in programs available to homeowners suffering a financial hardship, however nothing has worked. In addition, the mortgage refinance we applied for was just denied, after we were told we would be able to refinance our mortgage when we first applied for our loan. With two mortgages and monthly expenses that have gone up from [xxxx] to [xxxx], it seems hopeless unless we can negotiate a lower mortgage payment. Selling our home is not even an option anymore because our homes value is far less than what we currently owe.

This is a very tough time for our family financially. When we applied for this loan we had every intention of fully paying it off through on time payments each month. Getting behind on our payments or even foreclose is something we never dreamed would happen. Considering our income, if our mortgage payment does not get adjusted to an affordable one and our financial situation persists, then we will end up losing our house. Although we have been advised by our attorney to file for bankruptcy, we still want to save our credit record from further damage and try to keep our home.

That is why we humbly ask for your help and understanding in this matter. We are willing to discuss this matter further if you have any questions, or need more information. Please don’t hesitate to contact us.
Sincerely,

Sample Hardship Letter # 2

To Whom It May Concern:

I would like to explain the reasons why we have become delinquent on our mortgage.

Despite doing everything we can, we still unfortunately continue to fall short on our monthly mortgage payments. The reason we have financial difficulty and missed payments is [insert reason here briefly]. Our current income does not give us the chance to catch up on our missed payments, we had fallen further behind to a point where it seems impossible to pay what we currently owe you. We have exhausted all options trying to catch up, such as selling our assets. That is why we humbly turn to you for help.

With a firm goal to keep our home and continue to pay you each month, we would appreciate it very much if you can work with us to lower our past due balance and/or monthly payments. We believe that our situation will be better because [reason here] and we feel that modifying our loan will help us achieve this.

We truly hope that you will consider working with us and give us the opportunity to save our home. We are looking forward to hearing a  positive reply from you as we are anxious to settle this matter.

Sincerely and Respectfully,

Mr. & Mrs. ___________________
Signature_____________________
Loan # ______________________
Address______________________
Phone________________________

Sample Hardship Letter # 3

September 19, 2009

To: Countrywide Mortgage account # 369875126

Re: Mortgage modification program

For the past three years, I have been a good paying mortgage holder of your company. However, due to the number of times my current mortgage rate has been adjusted, I am in doubt if I can continue to afford it.

The amount of my mortgage is [amount] with a fixed rate of [xxx] for three years, which has recently gone up when it became adjustable. In fact, it is scheduled to be adjusted again come [date]. It is really getting difficult for me to continue paying you considering my current income. I want to keep my house and maintain good credit by fully paying the amount I owe you.

I sincerely request consideration for a loan modification. If it is possible, I would like to request having my interest rate changed back to being a fixed rate instead of an adjustable. If not, please postpone the next rate change until my refinancing application gets approved, which is also not going to be easy.

My property now is worth about 5-10% less than what I paid for it. This could very well affect my attempt at refinancing. But I am still hopeful because of the conventional mortgage modifications offered by Fannie.

I am more than willing to work with you if you have any other suggestions. You can see from my payment history that I have never been late nor missed any of my obligations since the beginning of my mortgage and I would strongly like to keep it that way.

Attached are supporting documents to support my claim of financial difficulty.
Thank you for your time and consideration.

Sample Hardship Letter #4

To whom it may concern:

We are one of the many homeowners who are facing a financial hardship that is making it  difficult for us to manage our monthly mortgage payments.

We simply cannot afford for our interest rate to increase anymore, as it already has adjusted from an interest rate of 7.75% to 10.75%. This 3% interest rate increase will add $1,695 to our current monthly payment of $4,234.10 making it $5,929.10 per month. We cannot afford an increase of this magnitude with our current income. If we don’t do something to remedy this soon, we will surely fall behind on our mortgage payments and probably end up in foreclosure.

We are an average earning family. Even so, we desire to live in a place that we own. That is why we are doing our very best to keep our home. The counselor we spoke to from 995-HOPE had us submit an estimated monthly gross income document along with our corresponding monthly expenses. We were able to realistically see that our housing cost has eaten 54% of our monthly income.

Our permanent source of income is my husband, who usually takes home a paycheck of approximately $7,839 per month. It sometimes can be higher depending on his overtime and holiday pay. However we cannot rely on these extras to satisfy our monthly obligations since it is not consistent. In addition to that, I am also receiving compensation of $1,435 from Social Security Disability.

We would like the opportunity to work with you to save our home thru a loan modification, which can benefit both of us. It would really help if our interest rate gets fixed to 7.75% for the entire loan term instead of the usual 3 to 5 year period settlement. This is because if we take that, we will only find ourselves once again filing for a new loan modification a few years from now.

Enclosed are valid documents for your evaluation. We humbly ask you to please consider our request. If you have any questions, contact us at [xxx-xxx-xxxx].
Sincerely,

Sample Hardship Letter # 5

To Whom It May Concern:

I am writing this letter to explain the reasons that have caused us to be late on our mortgage. We have given it our best to catch up, but with the unfortunate incidents I have listed below, we keep falling behind. Thus, we are asking you to consider modifying our loan so we can keep our home and continue satisfying our monthly mortgage payments.

Here are several reasons why we are financially incapable of paying our monthly mortgage.

1. Since June 18, 2007 we have been down to one source of income due to layoffs at Dell where my husband worked. His Unemployment Compensation is no longer active as of January 2008.
2. In November 2007, a family emergency occurred and we had to fly out of State. This has contributed to us missing our mortgage payment.
3. Since we no longer have medical coverage I had to pay in full for a series of doctor visits due to excessive menstruation, I had no choice but to pay personally because our medical coverage was already terminated.
4. While looking for a comparable job, my husband helps me with our small business that keeps us afloat through these times. However, it requires me to travel a lot as part of our marketing strategy which has been expensive due to high gas prices. The travel is necessary; otherwise we risked losing clients which we can’t afford.

With these series of incidents, catching up on our mortgage payments seems impossible. We have exhausted all our resources and efforts in order for us to retain our home and repay the amount we owe to Bank of America. This is why we are turning to you for help.

My husband and I have reason to believe that our situation will get better with the help of our business. We have faith that it will continue to prosper. I hope we will be given the opportunity to work with you on a loan modification. This is the only solution we have left to save our home.

Sincerely and Respectfully,

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