Hardship Letter | Free Hardship Letter Sample

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We just received a loan modification on our first mortgage loan. They changed our loan from an interest only ARM _____% to a Fixed mortgage at _____%. We would like to request that you lower the interest rate on our second mortgage, too, because the rate is extremely high, at_____%.
Loss Mitigation Department
EMC MortgageP.O. Box 660753
Dallas, TX 75266-0753

To Whom It May Concern:

Re: Request for Loan Modification at _______

Loan Number: _______

We are writing to request that you work with us to modify our second mortgage loan and lower our interest rate. We have owned this home for three years and ten months and we very much want to work with you to keep our home.

Hardship:
We just received a loan modification on our first mortgage loan. They changed our loan from an interest only ARM _____% to a Fixed mortgage at _____%. We would like to request that you lower the interest rate on our second mortgage, too, because the rate is extremely high, at _____%.

My husband’s company has recently informed him that they will be eliminating overtime hours entirely next year because of the economy. Without these hours, we already are and will be struggling financially. In addition, the value of our house has decreased dramatically because of the poor housing market, making refinancing a challenge. After consulting a realtor, we have discovered that we currently owe much more on the home than it is worth in the real estate market.

Our current debt-to-income ratio is _____%, which is clearly not sustainable.

Status of payments/ Ability to pay going forward:
We are current on our payments, but we want to do everything we can to insure timely and consistent payments in the future by asking you to lower our interest rate.

We have carefully examined our budget and cut out all unnecessary expenditures. We have paid off one of our credit cards entirely and are proactively working on the other two. We even have a set financial plan and timeline for paying these off, which will further free up our ability to make our payments. In addition, I ____ am looking for a second job to help supplement more income.

Request:
Due to impending loss of income and financial stressors, we are requesting that you work with us to lower our interest rate, as ____% is relatively high. Ideally, we would like our monthly payments to be around $____or less, including taxes, insurance, etc. We have meticulously reviewed our budget in order to come to this payment amount. After a much-needed reduction to our mortgage payment, we feel confident that our situation will continue to improve and that we will be able to reliably make the payments on our
home. We are hard-working, responsible home-owners, and want nothing but to keep our home.

We very much appreciate your consideration of our request. Our contact information is below. Please let us know what further information you need and we will promptly provide it.

Thank you very much for your time.

Sincerely,
_________
_________

Enclosures:
1. IRS 4506-T
2. 2 months of recent paystubs
3. Most recent tax return
4. Monthly housing & loan obligations