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Loan Modification Example Hardship Letter

By
Mortgage and Lending with Federal Loan Modification

Working in the loan modification business, we often overlook the simple steps in the loan modification process, so I wanted to put together a sample hardship letter to let homeowners see what is required in writing a good hardship notification. Please use this as a template, and read our full guide on how to process your own loan modification.

(Example Harship Letter)

To Whom It May Concern:

I am writing this letter 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 have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.

The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.

Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also 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,

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

Comments (3)

Winston Westbrook
Westbrook National Real Estate Co - Victorville, CA

Great post! I can use all the examples I can get. Thanks

Feb 22, 2009 04:32 PM
Anonymous
Steve

This is an actual email from a lender who is doing a "workout" loan modification for a borrow who has an 8.1% fixed rate loan and has missed a payment.  Even though the borrower now has the funds to come current, his lender refuses to accept any payments from the borrower and the borrower has just recived a Foreclosure Notice in the mail.  Bear in mind that the only reason anyone would get a Sub-prime loan is because their credit rating would not qualify them for a better loan.


"First of all once you are referred to foreclosure your loan is turned over to that attorney's office. Our company has no control over those letters. Per the note you signed at your closing you have given us permission to proceed with foreclosure if you stop making your payments.

 With regards to the plan the "Fed" is offering that is the HMP that our company will try to qualify you for if at all possible. Just as an FYI the criteria and documentation that the "Feds" are requiring through FNMA to approve an HMP is very thorough. Be prepared to submit additional information and they will scrutinize your credit before they will reduce any interest rates or defer any loan balances.

President Obama portrayed this plan as a very simple process and the fact is that this is a government run program and they will  dictate  to Fannie Mae what the guidelines will be. We are still awaiting training on this program that is still weeks away from being ready.

I hope you will qualify and that you will receive what you believe is due to you however if you have poor credit and extreme debit that will most definitely affect whether you will qualify or not.

I wish you the best of luck and again please be patient and let us do our jobs.

Thanks,
Your Lender"

Mar 28, 2009 10:07 AM
#2
Anonymous
road runner

One actually has to verify his / her options before taking a decision on loan modification. Thanks God that there are companies like http://www.editmyloan.com/ available to help us out!

May 20, 2009 06:17 AM
#3