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Hardship letter: What is it and how to write it?

If you've fallen behind on your mortgage and need a workout from the lender, you should send them a hardship letter. A financial hardship letter is a letter that explains why you're in default, what you have done in order to correct the default, and the workout plan you are interested in.

What a hardship letter should include ...

If you are trying to get a workout from your lender, you should include the following in your hardship letter:
  1. Your contact information including your name, address, and account number.
  2. Mention what kind of hardship you're experiencing and the possible reasons for it.
  3. State when the hardship began.
  4. Give a brief overview of your income and expenses. Tell the lender that you're expecting a change in your income. Also inform the lender about any money you have saved to compensate for the default.
  5. Give a brief explanation of the workout plan you are interested in and state the reasons why you think it may work for you.
  6. Include how your credit counselor (if you have one to help you negotiate) can be contacted.
Apart from the above, while writing a real estate hardship letter you should provide a statement of your income, expenses, and financial statements to prove your assets and liabilities. The type of information you should include are tax returns for the previous years, current pay stubs, etc. If you're trying to sell your home then you'll have to provide a copy of the realtor agreement along with the hardship letter. To get an idea how to write such a letter, check out a sample hardship letter.

Types of hardship that the lender may accept...

Here's a list of reasons why your hardship letter may be accepted by lenders.
  1. Loss of employment
  2. Medical problems that prevented you from working
  3. Reduction in salary
  4. You may be a single parent with a low income and you are not receiving child support
  5. You're a victim of some disaster
  6. Death of spouse or co-borrower
  7. Marital separation or divorce

Types of hardship lenders may not accept...

Your hardship letter may be rejected due to the following reasons:
  1. You're a student and cannot pay off the mortgage
  2. You're going through a divorce
  3. Your spouse has threatened to file bankruptcy
Usually mortgage lenders won't consider a workout plan such as forbearance, loan modification, short sale or foreclosure or a short sale without a proper explanation of your hardship. So, while writing a real estate hardship letter, you should provide a factual explanation of your financial situation. The hardship letter shouldn't criticize the lender or any other party involved in the mortgage transaction. It should simply state why you cannot follow the terms of the mortgage agreement along with a request for a workout plan.

My mortgage is with Chase and I have ask for a loan mdification. I have to submitt a hardship letter and I need help writing it. I can not afford the payment as it is because of health problems. My income is much lower now and I am on disability. I can't [url=http://www.mortgagefit.com/refinance.html]refinance[/url] because I don't qualify. I am not currently latebut I don't know if I can make March's payment. They told me to continue to "make the payments" and that this could take up to 90 days. I don't know how I am going to make the payments and I don't want to be late. What do I need to include to make sure this letter gets me the rate reduction that I need?

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi stigmong!

Welcome to forums!

The lender will stop the modification of the loan if you file bankruptcy. As per the court orders, the lender will not be able to do anything with your account as you are in bankruptcy.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 03/23/2010 - 23:29

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you are the co-borrower of a mortgage and facing problems to pay it off, then you can inform the lender about it. Depending upon your situation, the lender may offer you a loan modification.

Like | Dislike | Share | Posted: Tue, 10/13/2009 - 01:28

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My father passed away in April of 2012. I am 66 years old & on Social Security & my pension from the State. I retired at 62. I co-signed an installment loan, which was attached to the house several years ago & now I am responsible for paying the monthly payments, which are $293.00 a month. I also have my own line of credit loan, which is $295.00 a month, plus the mortgage, which is $564.00 a month. This almost $300 a month extra to pay out is leaving me with virtually nothing for myself. I have requested a loan modification from my bank, which could take months & I might not even get it. I have tried applying for online loans for people with fair credit, but I don't trust these loans. I had to [url=http://www.mortgagefit.com/bankruptcy.html]declare bankruptcy[/url] in 2009 & it has been discharged for over a year, but it is very hard to get a conventional loan. Is there anything else that I can try in the meantime? I would have liked to get a loan for about $4,000 to pay off my credit cards, but that is out of the question with my credit & bankruptcy. I'd settle for $800, but these online loans don't tell you your monthly payments, interest, etc. I can't sign off on a loan knowing nothing about it. I'm still going to apply for the loan modification, but in the meantime what do I do. I have never been in a situation like this, I can't even get my cat & dog proper medical care, etc. HELP!

Like | Dislike | Share | Posted: Tue, 01/01/2013 - 11:39 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi clover.

You can apply for a personal loan in order to pay off the credit card debts. However, you should note that such loans are available at a high interest rate. Apart from this, I don't think you will have any other options left.

Like | Dislike | Share | Posted: Tue, 01/01/2013 - 20:57

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome bubbles,

Normally, lenders may start the foreclosure procedure once you're 3-4 months delinquent on your payments.

Like | Dislike | Share | Posted: Wed, 02/09/2011 - 22:01

jaenabysmeme's picture
jaenabysmeme | Joined: June 19, 2010 09:31 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Jessica, I've been patiently waiting on a short sale approval for six 3/4 months. A BPO has been completed and one of two mortgages have even been sold to another co within the six months. We just learned that the seller has been paying their mortgage the entire time and has only missed one payment June 2010. Will mortgage co approve a short sale after missing only one month or am I in this for four to six more months?

Like | Dislike | Share | Posted: Sat, 06/19/2010 - 10:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i was denied hamp bc although i met the criteria bc of disability i was told not all documents were received although i sent in repetitively.i also was told the trial payments that i was approved for were not all taken even though they had my banking info with acct and routing number and they never sent me correspondence that i had to contact them every mo to give ok although they told me it would continue for automatic removal for every mo. i did not check every mo as i had it in a bank just for the mortgage and i was hospitalized for some of the time. what can i do?what mort surplus do u need for a regular modification

Like | Dislike | Share | Posted: Thu, 06/10/2010 - 09:13 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am reading above and it says the lender may accept a hardship letter for marital separation but then it also says under types of harship letters that may not be accpeted "going through a divorce" -

I have not yet filed for a divorce as my husband left the home 4 months ago and is not helping me with any of the bills. At this a point I dont know what to do.
[size=9:c2c7a877fa]
[color=Red:c2c7a877fa][E-mail address deleted as per forum rules. Thanks.][/color:c2c7a877fa][/size:c2c7a877fa]

Like | Dislike | Share | Posted: Sun, 10/11/2009 - 20:56 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The house next to mine( same model) is selling for 50% of the amount I pd for mine. Actually I still owe $210K and the builder is sellling his for $160K. I can't walk away from my house because $140k have already been pd. Do you think I have a chance offering the bank for a pd out settlement?

Like | Dislike | Share | Posted: Sat, 10/30/2010 - 17:49 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you are the Co-Borrower and you cannot get the Borrower to sign the Loan Modification papers can you still get approved for the loan.

Like | Dislike | Share | Posted: Wed, 02/10/2010 - 06:58 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi krewkabkidz,

Loan modification can help you in making your loan payments more affordable. Once the loan payments are affordable it would be easier for you to pay off the dues. You can apply for a loan modification with your current lender and check out if he accepts your request or not.

Thanks

Like | Dislike | Share | Posted: Tue, 09/15/2009 - 00:33

gjl863's picture
gjl863 | Joined: September 1, 2010 06:25 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

how much should a mortgage modification cost with professional help?

Like | Dislike | Share | Posted: Wed, 09/01/2010 - 06:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We have a mortgage with BOA and our payments will double in a month. We want to modify, but I am also in the process of filing for bankruptcy (for a business which unfortunately didn't transpire). The bankruptcy will be filed only with me and not with my wife. I recently found a job but the payments will be too high. Do we have an opportunity to qualify for a loan mod if I'm filing for bankruptcy? Thank you for your time.

Like | Dislike | Share | Posted: Mon, 08/23/2010 - 22:45 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I moved from the property mentioned for work and was upside down as most people. So I tried to sell no luck I then rented it out for a year still losing about 600 month. I tried refin with my mortgage co citibank and was denied due to being upside down. So I did not renew the lease wrote a hardship letter put the property up for sale for what I owed and was told to drop the price every week to show I was making an effort so keep dropping and dropping etc... until finally 1 offer then 3 came in and the citibank excepted the highest my realtor and lawyer were paid from the settlement. I missed Aug- Feb payments and the citibank showed my balance paid in full closed on all credit reports and told my lawyer that they are going to write off the difference. So my credit score dropped from like 780 to around 680 during March. I closed on the place in March and April 1st my credit score went up 50 points I was overjoyed. Does this mean it will keep going up all my other finances are never late and I have no credit card balances so will it drop again from this or is the worse over? Also a short sale as I have read does not show on a credit report. Does this mean (not that I would) I can purchase another property? Did I get lucky I documented everything and sent paperwork to Citibank and even tried to refin through them is this a good sign? thanks

Like | Dislike | Share | Posted: Sat, 04/17/2010 - 21:11 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jaenabysmeme,

Your query has been replied to in the given page:
http://www.mortgagefit.com/annoucements/about39978.html

Take a look at it. Hope it helps you.

Like | Dislike | Share | Posted: Mon, 06/21/2010 - 01:18

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

After you get your loan modified. Can you file for bankrupcy? And how long do you have to wait to file?

Like | Dislike | Share | Posted: Thu, 03/25/2010 - 05:31 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

If you keep on making payments in regards to your other dues on time, it will definitely have a positive affect on your credit report. Also with time, the negative items will have minimal affects on your score. As far as purchasing another property is concerned, you will have to wait for 2-3 years after the short sale to get a home loan. Prior to that, lenders will not be ready to give you a mortgage.

Take care.

Like | Dislike | Share | Posted: Mon, 04/19/2010 - 02:07

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi uwet!

Welcome to forums!

The lender will agree to your loan modification request depending upon your present financial situation. You will have to convince the lender for the same. Unless the lender is convinced about your situation, it will be difficult for you to get a modification. If you're unable to negotiate for a modification, you can get in touch with an attorney and take his help in this matter.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 06/10/2010 - 23:58

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can you file for bankrupcy while modifying a loan if you want to keep the house?

Like | Dislike | Share | Posted: Tue, 03/23/2010 - 04:58 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi terry,

If there are two borrowers for a mortgage, then both the borrowers will have to sign the documents for modification of your loan. If that does not happen, then the lender will not be ready to give you a modification.

Thanks

Like | Dislike | Share | Posted: Wed, 02/10/2010 - 23:19

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi!

Welcome to forums!

To Guest,

If you're [url=http://www.mortgagefit.com/know-how/filebankruptcy.html]filing bankruptcy[/url], then the lender may not offer you a loan modification unless you're discharged of the filing. Nevertheless, you should contact your lender to find out if he can help you in this regard as you're not including the property and the mortgage in your bankruptcy filing.

To gjl,

The fees may vary from one modification company to another. However, the modification company will not be able to charge you any fees upfront.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 09/02/2010 - 00:55

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi CALVIN,

You can ask the lender for a principal reduction but it will be completely the lender's discretion whether or not he will consider your request. In case he does not consider your request, then you can decide on selling off the property.

Like | Dislike | Share | Posted: Tue, 07/03/2012 - 23:21 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

over the course of this recession I have lost approximately 36% of my income due to lost working hours that was strictly overtime pay. My family and I have lived in the same house and never been late on our mortgage. We managed to pay off some credit cards this year by selling off all possible savings bonds and pulling everything but $500.00 aout of our savings but now we find ourselves using the credit cards again for everyday expenses. We don't eat out and have cancelled our home phone due to having cell phones that were cheaper. Will a loan remod possibly help us? We have Chase. Thanks, Mike

Like | Dislike | Share | Posted: Mon, 09/14/2009 - 20:13 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

How many missed house payments before a bank will start for cloursure on your home

Like | Dislike | Share | Posted: Wed, 02/09/2011 - 11:52

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

How many missed house payments before a bank will start for cloursure on your home

Like | Dislike | Share | Posted: Wed, 02/09/2011 - 11:52

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi stigmond,

You will be able to file bankruptcy after getting a modification. I haven't heard of any such time period you need to wait after getting a loan modification and then file bankruptcy.

Thanks

Like | Dislike | Share | Posted: Fri, 03/26/2010 - 00:44

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

MY MORTAGE IS MORE THAN THE VALUE OF THE MY HOUSE. CAN I ASK THE BANK TO LOWER THE LOAN TO THE VALUE OF THE HOUSE OR SHOULD I DO A FORCE SALE

Like | Dislike | Share | Posted: Tue, 07/03/2012 - 16:01 | Post subject:

kpatrick's picture
kpatrick | Joined: October 29, 2007 05:46 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Vickie,

Welcome to the forum!

A hardship letter is nothing more than you sitting down and elaborating on your situation, in detail. I know in the beginning, it may seem like a difficult thing to do, but just sit down and start typing the story, and after you get started, it isn't as difficult as you think. Here are some guidelines that you can use:

You must explain why you have gotten behind and why you cannot afford your payments. You must be very specific as to the dates of the Hardship.

Use this guide to give you some ideas...

The key with a hardship letter is to be very detailed in the fact that you have tried everything you know to do...the challenge is, most lenders will not make adjustments to the mortgage if you aren't already behind in the payments. I know this sounds strange, but it is just how it is.

I hope this helps, and good luck to you!

Like | Dislike | Share | Posted: Tue, 02/12/2008 - 14:29 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for the reply. I have submitted my letter along with tax returns pay stubs, bank statements and a budget. I have not yet missed a payment but I do not have the money to make the next one due. Will they wait until things get that bad before they help? Do they charge a fee to do this?

Like | Dislike | Share | Posted: Mon, 02/18/2008 - 15:07 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Vickiesmith,

Welcome back.

It's good that you've submitted the letter. The sooner you do so, the better. Well, I really don't know whether they will wait; this will totally depend upon the lender and I suppose he'll charge a fee if he's doing a loan modification. How long is it before the lender is likely to respond back to you?

Thanks

Like | Dislike | Share | Posted: Mon, 02/18/2008 - 23:09 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I'm not sure, theperson that took my request for the modification said it would take 60 to 90 days and for me to continue making the payment which I can't. I have no income as I have been dignosed with a rare blood disorder in which there is no cure and prevents me from working. We are having to live off of my husbands income which is a big change for us. I hope they will let me keep my house. If they modify it to a 5-6%interest rate we could afford it.

Thanks

Like | Dislike | Share | Posted: Tue, 02/19/2008 - 06:15 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i think you need to kick your request up a notch, vickie. it seems that the individual you have been dealing with so far has failed to grasp the critical nature of your situation.

do not wait for them to contact you....can i say that again? DO NOT WAIT FOR THEM TO CONTACT YOU. okay...i will relax now.

you need to persuade them, cajole them, convince them that this is a very critical situation and that waiting 60-90 days is not an option for you. perhaps you need someone to assist you in this endeavor. do you have legal counsel who can act on your behalf?

no matter what, please try to contact a supervisor of the person with whom you have been speaking so that you can impress upon that person the immediacy.

Like | Dislike | Share | Posted: Tue, 02/19/2008 - 10:56 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks George,

If I don't hear anything today, I will do just that. This stress is almost unbearable. I don't have legal or other counsel, no money for that. Do you think I should contact HOPE? Could they get the ball roling faster?

Thanks
Vickie

Like | Dislike | Share | Posted: Tue, 02/19/2008 - 13:00 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

by all means, contact HOPE. you need to contact anyone who can help you, frankly.

leave no stone unturned.

Like | Dislike | Share | Posted: Tue, 02/19/2008 - 13:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I agree with George, you should contact them again and stress the urgency of your situation. I submitted my hardship letter and request for loan modification on Feb. 11 and was told that it should take 2weeks to get an answer. I made it a point to let them know that I will not be able to make the March payment as it is right now, so the sooner they can assist me in some kind of way, the better we all will be as I know that they want something for March and so on. Good luck!

Like | Dislike | Share | Posted: Tue, 02/19/2008 - 14:10 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Modifications typically aren't something that's done right away, unfortunatley there are literally thousands of people asking for the same thing (loan mods). Workout Departments are over whelmed and understaffed, so they have to prioritize work and normally houses facing a foreclosure sale date are going to take priority first. The mortgage industry is hurting too and having financial problems so they can't hire more staff to help.

Just try and be patient, at best it's going to be a 6 week process in all likliehood

Like | Dislike | Share | Posted: Tue, 02/19/2008 - 18:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

keep in mind a modification in most cases won't lower the current payment you are on. If you have an ARM loan, the rate will just reset to the original rate before the adjustment.....if you have a fixed rate most investors won't allow you to lower the rate any lower than the initial rate...if you are delinquent all a mod is going to do is put your delinquent balance into the principal which will actually raise your payment..

Like | Dislike | Share | Posted: Tue, 02/19/2008 - 18:09 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Matt -
Different lenders must have different stipulations and offerings when it comes to loan modification. I'm with Countrywide and have been initially approved for a loan modification through their Home Retention department. They said I qualify for a rate reduction on both my first and second, which would inevitably decrease my monthly. I guess it all depends on your situation and your lender.

Like | Dislike | Share | Posted: Tue, 02/19/2008 - 19:49 | Post subject:

helping_user's picture
helping_user | Joined: March 31, 2006 03:39 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

yeah Shemiah, it actually depends upon the lender and your situation as to whether you will be able to get a rate reduction or a loan modification.

Matt, is it true that modification doesn't lower payments? because it is done to give some relief to borrowers and actually help them pay off the loan instead of being delinquent.

Thanks.

Like | Dislike | Share | Posted: Tue, 02/19/2008 - 23:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for all the response. Does anyone have any experience with Chase? I just got off the phone with them and they said that It will take 30-45-60 to 90 days and that I still have to make March payment. I ask about deffering that payment and was told that they do not offer a forbearence program. If the rate is not reduced and my payment lowered, i will go into forclosure.
Shemiah- can you (IN GERERAL) share with me what your hardship letter said?
George/all How do I get in touch with HOPE? I live in North Carolina.
Thanks to all
Vickie

Like | Dislike | Share | Posted: Wed, 02/20/2008 - 08:45 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Vickie,
Below is the my letter (although I've removed some of the more personal info).

This letter is a request for a rate reduction for loans XX for my home located at XX.

Unfortunately, I have experienced several events that have drastically altered my financial situation to the point where I can no longer afford this home. THIS IS WHERE I GO INTO DETAIL OF MY FINANICAL SITUATION. As of now, I can no longer afford this residence and will soon fall behind on my payments if my monthly payment is not reduced to an amount that I can afford.

As you will see, I have never once been late on my payments because I value my credit, my home and the commitment I made when I entered into this agreement. I have also managed to maintain an excellent credit rating; however, I fear that if I do not receive any type of assistance soon for my situation then the aforementioned will be a thing of the past.

HERE I TALKED ABOUT PUTTING MY HOUSE ON THE MARKET, BUT I MADE A POINT TO HIGHLIGHT THE SEVERITY OF THE MARKET AND THAT SIMILAR TOWNHOMES HAVE BEEN SITING ON THE MARKET FOR MONTHS WITH CONTINUAL PRICE REDUCTIONS AND STILL NO OFFERS. AND I WOULD HOPE THAT IF IT GOT TO THIS POINT, THE LENDER WOULD RECOGNIZE THE CURRENT STATE OF THE MARKET AND APPROVE A SHORT SALE.

HERE I INCLUDE WHOM I SPOKE WITH AT THE BANK AND WHAT THEY HAVE ADVISED ME TO DO.

I hope that LENDER'S NAME will review this request with understanding and a willingness to help a faithful borrower whose situation has changed beyond her control. I thank you for reviewing my request and I look forward to hearing from someone soon.

Sincerely,

Like | Dislike | Share | Posted: Wed, 02/20/2008 - 13:14 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Vickie,

Being a North Carolinian, you can contact HOPE Hotline toll-free at 888-995-HOPE .

Thanks

Like | Dislike | Share | Posted: Thu, 02/21/2008 - 00:53 | Post subject:

vickiesmith54's picture
vickiesmith54 | Joined: February 12, 2008 10:42 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks to everyone who has helped me with this. I will try to keep updates as to what is happening in hopes that this will help someone else as well.

Thanks again

Vickie

Like | Dislike | Share | Posted: Thu, 02/21/2008 - 08:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yes it is true that a loan modification does not always lower your payment..most investors will not allow a rate reduction on a loan that is already a fixed rate.....if you are 4 months late on your mortgage and you have a fixed rate your payment will go up because the 4 months are being put back on your principle and it is capitalized over the remaining term of the note thus raising your principle balance and raising your payment..

If you are current and simply asking for relief from your ARM then no your payment won't go up your interest rate will likely just be rest for 5 years to the original rate....if you are delinquent AND you have an ARM your rate might get rest but because of the delinquency and depending on how delinquent you are your payment still may go up also..

Like | Dislike | Share | Posted: Thu, 02/21/2008 - 17:29 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Matt,

Welcome to the forum.

Good suggestions Matt. You seem knowledgeable. Are you a lender or a broker?

Why don't you join this community? You can help people and at the same time can earn some $$$ and also make friends from all over the world.

You can introduce yourself at http://www.mortgagefit.com/introduce-yourself-5.html and let your self know to the world.

Feel free to ask if you have any further questions.

Thanks,
Larry

Like | Dislike | Share | Posted: Thu, 02/21/2008 - 17:38 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Not a lender or a broker, just someone who does workouts for a mortgage company for a living..just hoping to educate a few people along the way!

Like | Dislike | Share | Posted: Sat, 02/23/2008 - 19:35 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Matt,

You mean you're into negotiating with mortgage companies to help borrowers with some work out options? Isn't that similar to a foreclosure help company? I've heard most of these companies are frauds, is that so? You seem to be giving some great advice here. Not a problem if you aren't a lender or broker, you can still join this community and get rewards as other have. Just have a look at http://www.mortgagefit.com/annoucements/community-rewardsdollar.html .

Even i joined with the aim to help others..i was looking for such communities to help people whenever I had time from my regular work and i stumbled across this forums one day and what a great community it is! I like the people here as they genuinely want to help others and you too seem to have similar thoughts. Well, that's great 8)

Hope to see you soon as a community member. :)

Like | Dislike | Share | Posted: Mon, 02/25/2008 - 23:40 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

No I work for a workout department for a mortgage company. I'd perfer to remain annonymous however. :)

As for Foreclosure assistance companies, I wouldn't go as far as to call them frauds because many have genuine intentions of helping homeowners, however from the borrower perspective those companies can not do anything you can't do yourself, so why spend the money? The money you spend on getting one of those Foreclosure Assistance companies to help you is money you could put on your delinquent mortgage!
The best rule of thumb is to work with your creditor and negotiate directly with them in most instances.

Like | Dislike | Share | Posted: Sat, 03/01/2008 - 13:58 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Matt,

I think the main moto here is to help people if we can. So if you can help people with your sound info and valuable suggestions there is nothing better then that :)

Best of luck,
Larry

Like | Dislike | Share | Posted: Sat, 03/01/2008 - 14:14 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello, I am currently deliquent in my loan by two months. I have decided to try an do a Short sale or a [url=http://www.mortgagefit.com/deed-lieu.html]Deed in Lieu of foreclosure[/url]. :? I have not loss employment just simply switched job which in the future will be more pay. Also I had my daughter has a renter. Which allowed me to have no problems. She is moving out of town to college. So there went the extra income. I am attempting to get a second job. Next questions: Now bad does a short sell or Deed in Lieu of Foreclosure effect your credit? 100 or more points?

Like | Dislike | Share | Posted: Tue, 09/09/2008 - 17:46 | Post subject:

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