05 August 2010 ~ 0 Comments

How to Write A Hardship Letter : Seniors, Medical Disability, Increased Costs

I am writing to request that you work with us to modify our mortgage loan. We have owned this home for ____ years and we very much want to work with you to avoid foreclosure….
Loss Mitigation Department
Saxon Mortgage ServiceP.O. Box 161489
Fort Worth, TX 76161-1489

To Whom It May Concern:

Re: Request for Loan Modification for property at _________

Loan Number: _________

I am writing to request that you work with us to modify our mortgage loan. We have owned this home for ____ years and we very much want to work with you to avoid foreclosure.

Hardship:
My wife and I are both seniors on social security, although I have another job in order to bring more income into our household. My wife is currently on disability and can no longer help to bring in additional income. While our monthly income dropped over the past ____ years, and we anticipate a further drop due to the declining economy, our monthly mortgage has increased, making our ability to pay difficult. The current market price for our home does not allow us to sell it. We are doing everything we can to stay afloat.

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

Status of payments/ Ability to pay going forward:
We are current on our mortgage, but seriously doubt our ability to pay going forward at the current mortgage amount. We have meticulously reviewed our budget and cut out all unnecessary expenses.

Request:
Due to loss of income and financial stressors, I am requesting that you work with me to lower our payments to around $____ per month, 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, I am 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 home-owners, and we want nothing but to keep our home.

I very much appreciate your consideration of our request. My contact information is below. Please let me 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

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