Hardship Letter

[Anonymous]

I spoke to my mortgage company today (Midland Mortgage) about doing a loan modification and they are requesting a hardship letter and 2 months of past check stubs. They said after they receive the information they could have an answer within 2 weeks if I fax them the info ASAP.   Does anyone have a sample of a hardship letter? I am really not sure what to include in the letter.   Thanks in advance!

[Anonymous]

They want the paystubs so they can determine what you can pay.  They base it around a percentage of your earnings.

As far as the hardship letter, I don;t have an example but they just want you to put down what circumstances have caused you to need the modification to weed out people looking for a handout.  they want to make sure that people who have been irresponsible or want a handout do not interfere with people who really need the help.

[MattH]

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@Anonymous wrote:

They want the paystubs so they can determine what you can pay.  They base it around a percentage of your earnings.

As far as the hardship letter, I don;t have an example but they just want you to put down what circumstances have caused you to need the modification to weed out people looking for a handout.  they want to make sure that people who have been irresponsible or want a handout do not interfere with people who really need the help.

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Also they want a convincing explanation of why this modification really will work for the long term.  Earlier today I saw a news item that about half the people who got loans revised to lower their payments in the first half of 2008 have already defaulted on their reduced payments, and I am sure the bankers already know this.  So to original poster, you need to make a case that you are unlikely to end up in such a situation.

[Anonymous]

True, they usually want to see that you are not overextended across the board and that you can make a reasonable arguement about deserving a modification, and that the modification is a fix for the problem, not a band aid.

[Lel]

Example of a hardship letter

[Anonymous]

Thanks for the responses and the sample letter.  We are currently 3 months behind on our payment and it has been consecutive for almost a year. We fell behind and could never get caught up after missing a payment and I really don't know what else to do other than request the modification. I faxed my info today. We can afford the house so that is not a problem we are just asking for help to bring our account current.   This is the only thing negative on our CR. I don't know what my scores are, but my husbands middle score is 642.  What are things they look for when approving?

[rudy]

I am in the same boat you send a copy of the hardship letter recieved it would greatly be appreciated. I am in the middle of filing out the paper work

[Lel]

Follow the link in post #5 of this thread and you'll find a couple good examples.  The forum that the hardship letter is posted on - the LoanSafe.org site - is a very good resource for those seeking a modification.