When considering you for a modification of your Loan, the lender will place a lot of weight on your hardship letter. Think of the hardship letter as your opportunity to prove to your lender that you’re serious about keeping the property.
It’s important for you to put some effort into writing this explanation. Below are a few simple guidelines you might want to follow:
In your hardship letter, be sure you:
- Include the lender’s name and address, your loan number, your name, and the address of the property in question.
- Open your letter by explaining that you bought the property or you refinanced the property.
- Briefly recount your past payment history. For example, “I’ve always paid on time in the past and haven’t been late.”
- Give details for the reason of your present hardship. Include what happened, when it happened, and the impact the situation is having on your finances.
- Then, explain how you have, or will, resolve the problem. For Example: “I have now found a new job that is paying a higher salary with more job security. I can make regular payments but need help to stay current and pay the arrears.”
Close by explaining that you would be grateful if the lender… (Did whatever you want the lender to do). Be specific about this.
Each borrower must sign the bottom of the letter and the Income and Expense Statement
Stopped-Foreclosure
Hardship Letter Sample:
Bank name
Bank Address
Sate
Your Name
Your address
State
Date
Loan Number:
Re: Mortgage Modification
To Whom It May Concern:
Due to the recent adjustment in the mortgage I currently have with your company, I’m finding it very difficult to afford the new payment. I have a (fill in year) fixed rate which is now adjustable and is scheduled to adjust again in (fill in date). Considering my current income, there will be no way I can afford the increased payments when the mortgage adjusts. Hopefully, there’s a way to renegotiate the terms of my current mortgage to avoid default or foreclosure on my home.
Is it possible to have my current adjustable rate mortgage converted to a fixed rate? Any other solutions you could provide would be greatly appreciated. I have made consistent payments over the past (fill in) years and I do not want that to change.
I thought maybe I’d be able to refinance my loan, but due to the downturn of the housing and mortgage industry, I’ve found this is not a possibility. The main problem is that my property is now worth about 5-10% less than what I paid for it; preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications. I believe this addresses the situation in which I currently find myself, along with many other homeowners. Attached are recent pay stubs showing my current income, as well as my W-2′s for the past two years. Please let me know what other information I can provide you with that would help you come to a decision in my favor.
Thank you for your time and consideration.
Yours truly,
Your Name
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You have a awesome sute Stephenie Willis. I’ll be returning again in the future.
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