Loan Modification Package - Hardship Letter example

November 28, 2008


Phoenix AZ real estate and Scottsdale real estate has been declining in value. As a result, lenders have been less willing to loan money to refinance homes. Thus, foreclosures numbers are rising and banks are taking possession of real estate called lender owned real estate (REO).

In order to combat growing inventory of bank owned homes, banks have established (with some pressure from our Federal government) loss mitigation programs to keep borrowers in their homes and stop foreclosure.

Currently, loan modification is an option for borrowers to stop foreclosure, stay in their home by offering a permanent change in one or more of the terms of a mortgagors loan which allows the loan to be reinstated and results in payment the mortgagor can afford.

In order for most banks, if not all, to accept a loan modification, you  must be going through a personal hardship such as reduced work hours or unemployment… or are facing medical issues or even divorce. Also, bank will work with homeowners who have seen and interest rate adjustment or were victims of predatory lending.

A declaration of hardship is one of the most critical parts of a loan modification package and I wanted to include a copy of a loan modification hardship letter that was sent to me from an associate who has recently modified their loan with a major bank successfully.

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To whom it may concern:

I,  John T. Borrower,  would like a chance to explain my current situation. When I purchased this Home I planned to raise my kids here and stay close to my roots (my parents live less than 2 miles away) and live in this house for the rest of my life. When I singed the loan papers on the 2 year arm I was assured up and down that the value of my home would increase. I did not.

 

Matter of fact it’s gone down in value like a used car I am currently upside down. Now as you know my Interest rate has adjusted to______% and I will not be able to pay this high payment and buy food, clothes, Gas for my Trucks and utilities for my home. I have been pulling my hair out worried not sleeping trying to find a way to fix this problem.

 

Since 2001 I have ran my own business along with my Brother, Mom, and Dad a true Family operation. We do construction jobs in Phoenix Arizona and many surrounding cities. I was working at the bare minimum of 6 days a week 8-10 hours a day.

 

Because of the down turn in the construction business in Arizona my work load has been cut more than 65%  I no longer with several of my customers. Less then twice a month I will get work with others, but it is rare. I have been doing jobs like tire hauling a couple weeks out of the month too, but it doesn’t even come close to amount of work I used to have.

 

As a result of the poor economic conditions,  I am asking for a modification on this loan from what I hear on the news, and research I have done the bail out money will be given to banks so that loan modification could be done.

 

Please help me keep my home I want to stay here. I know everybody has a story, but I think we can both win in this transaction.

Thank you for your time,

John. T Borrower

 

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I am not a loan modification specialist, please consult with an attorney or CPA.

 

If you are considering a loan modification please ask for a referral of a loan modification company that has been successful for borrowers.

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Copyright © James Wexler *Loan Modification Package - Hardship Letter example*

If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.

Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale AZ short  Sales

 

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Written by James Wexler · Filed Under Articles, Short-sales / Foreclosures 

Comments

One Response to “Loan Modification Package - Hardship Letter example”

  1. Joy Wiggins on December 9th, 2008 1:23 pm

    We are in the state of Florida which has been hit hardest with declining home values and foreclosures. We created our site to try and help homeowners avoid foreclosures by giving them advice and sample letters to help with loan modifications as well. http://www.letterofhardship.com.

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