Effective Hardship Letter for Loan Modification -

LETTER THAT WORKS

 This is an actual letter of a modification that was APPROVED...

The outcome 1st Mortgage was reduced to $325k @ a 4.1% interest rate for the next 3 years, if the homeowner refinances they will have to payback the part of the loan written off, and the loan cannot be paid off, or extra payments.

The outcome of the 2nd Mortgage was written off except for 10% which was paid to release the deed, the homeowner will have to pay what was written off as income and it was reported to the IRS.

The Line of Credit is still in process of being modified.

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Tuesday, January 08, 2013

 

Loan Number xxxxxxxx9925

Address

 Dear Bank:

My husband and I are seeking a loan modification because my salary was recently significantly reduced due to the decline in the Real Estate Market and the significant decline in the value of our home.

We currently owe approximately $494,000.00 on a home that is worth $360,000.00 and our adjustable rate mortgage is due to adjust. We own $408,000.00 to Ocwen at a 7% interest rate, $50k to XXX at a 8% interest rate, and $36K to XX Bank who has reduced our interest rate to 3.5% (we are current on these payments).

My husband and I are still currently working and making a good income and would like to stay in our home if we could get the payment reduced to its current value of $360k and the interest rate of our payments to today's current interest rate of around 4% we could make the payments and continue to live in our home.

We would also like the payments we arrears on to be reduced to the modification rate and added to the back of the loan.

We are hoping that XXX Bank will work with us to help us save our home, and we can get back on track making payments as soon as possible.

__________________________________________________________________________________

The names of the banks have been XXX out, you can use the letter to modify your own loan if you find it useful.