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The following two letters below are examples of hardship letters that can be used for loan modification, Short Sale and Deed in Lieu of Foreclosure.
They are merely examples and should reflect your own situation so make your letter about you and keep it short and to the point.
Loan Modification, Short Sale and Deed in Lieu of Letter Examples
Borrower’s Signature
Date
Co-Borrower’s Signature
Date****************************************
Date
Co-Borrower’s Signature
Date****************************************
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
I am writing this letter to explain what has 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 be short and to the point) 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 name). 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.
(Put the date the hardship began and if your situation is Temporary or will be Permanent.)
Our situation 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 you.
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,
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
Date
Co-Borrower’s Signature
Date
****************************
To Whom It May Concern:
Due to the recent adjustment to our mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 2 year fixed rate which is now adjustable and is schedule to adjust again in April 2009.
Considering my current income, there will be no way I can afford the increased payments in April. Hopefully there is a way to renegotiate the terms of my current mortgage to avoid default and help to stop a foreclosure on my home.
Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.
I have had no problem making my payments for over ____ years now and do not want that to change. My mortgage was originally written by another company and bought by _________. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.
The main problem is that my property is now worth about less than what I paid for it which is preventing me from being able to refinance.
I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income.Sincerely and Respectfully,
Thanks you for your time and consideration.
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
The examples here are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. These are merely examples and your letter should reflect your individual circumstances.
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
My wife has recently suffered a devastating illness. She is unable to continue working and it may be years before she is well enough to work. She has been the primary wage earner in our family for the past ___ years.
My income cannot come close to covering our monthly expenses. We find ourselves deeper in debt every month with no relief in the foreseeable future. I have sold our second car and anything else we do not absolutely need. Our home is large and the minimum monthly expenses for the upkeep, electricity, gas etc are very high.
Our hope a this time is to sell our home. Unfortunately, if we sell our home in the present slow real estate market, we will be upside down about $__________.00. Our only other alternative is bankruptcy.
We would appreciate any help you are able to provide.
Sincerely,
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
************************************
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
As a result of upward adjustments to our monthly mortgage payment, my wife and I are unable to afford our mortgage. As I sit here today it’s not clear to me how I ever thought that we could afford the mortgage once payments started adjusting. I wish my loan officer would have explained to us where our monthly payments were going to be when they adjusted.
We have borrowed money from family and we have take cash advances on credit cards, but we are falling further and further behind with no real hope of affording the payment. At this point, we can’t do it any longer.
Both my wife and I are very sorry that this has happened. We are losing our dream house, and we know you are losing too. We just don’t have any other options.
Please work with us on a Short Sale or Loan Modification. We don’t want to go through foreclosure, but if we can’t do a Short Sale or Loan Modification, we will not be able to avoid it.
Thank you for your consideration.
Sincerely and Respectfully,
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
******************************
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
I am unable to keep current with my mortgage due to divorce. I am receiving no financial support from my husband and I have been a homemaker for the past ___ years. I am employed, but because of my lack of skills, I am unable to earn much more than minimum wage.
I have ___ children at home ages ___ and ___. With the cost of daycare and my other obligations, there is just no way to make the mortgage payment. I have used up any available credit just to keep food on the table.
I cannot keep my home and must sell it. The real estate market is such that I owe more than what my home is worth. My only other option would be to file bankruptcy. I am an honest, hardworking person and it is devastating for me to find myself in this awful position.
I would deeply appreciate any help you can offer.
Sincerely,
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
