[passmeby]

Can anyone help me with writing a hardship letter to my mortgage company? Any tips, pointers, what TO say, what NOT to say...

Background: Defaulted on mortgage. Owe back payments and legal fees due to foreclosure actions. Mtg company has agreed to suspend action to await and consider proof of income and a hardship letter.

We WANT to pay, we keep in contact with the Company. We have told them previously that we want to be able to make our regular monthly payments, and also pay on the legal/other debt per month. They do not seem to comprehend. As it is right now (and for the past several months) we have NOT been allowed to even make our current monthly pymnt. They will NOT accept the money.

This may be our last chance or we will ultimately have to file BK. I need help writing the most effective letter ever written.

Please help!! This is urgent:eek:

[Clough]

Hi, passmeby!

Have you called your mortgage company and personally spoken with someone? I did that recently with a problem that I was having with paying my mortgage, and we were able to work out things over the phone.

But, it does sound like you have spoken with them. Correct?

Also, whenever I speak on the phone with any kind of creditor, I make sure that I have someone else on another line and let the creditor know that someone else in on the other line.

Thanks!

[Clough]

I'm here to help you, passmeby, if you're still around. I hope that you return! I'll be up for quite awhile since it is a holiday tomorrow.

Thanks!

[passmeby]

Sorry, I was tired lastnight and figured I'd check back in the morning!

Yes, we are constantly in contact with the mtg co. The reps are not very bright, to be honest. There is no personalized service, it's just a receptionist with no real training punching #'s into a computer. The computer says "yes" or "no". This hardship letter may be our only chance at actually getting a person in charge to listen.

The problem is that we have a LARGE back debt that we just can't pay all at once, there is simply no way. We can, however, pay our regular payment if they'd let us. We could also pay some money towards the back debt. I've tried to convey this before but they don't seem to get it.

We were on the phone with them the other day, and they told us to write the letter and send proof of income. They said once they receive these items, they will respond within 48 hours.

To explain a little further about this company (Wells Fargo)... calling them results in talking to an untrained, barely literate receptionist. I've asked to speak to managers or supervisors to no avail. I cannot comprehend the fact that they'd rather receive NO money and try to forclose rather than let us pay our payments and slowly pay down our back debts. We have been trying for months to do this. We are fed up with this company.

Basically the letter needs to say why we defaulted in the first place (a workplace injury led to a reduction in pay) and what we can do about this.

I'll check back in the afternoon for any responses or further questions. Thanks for any help!

[Clough]

Hi again, passmeby!

I found what is below, on the following site. I hope that it is helpful to you.

How to Write a Hardship Letter

What should I write in a Hardship letter to get the Mortgage Company to give me another chance?

A Hardship letter is something most Mortgage Companies will require to consider you for a “Work Out”. This is your opportunity to appeal to them to give you another chance. This should not be used to complain to what they have done or not done to make your situation worse. This letter must be honest and represent the facts clearly. It must prove to them that the situation that caused you to fall behind was temporary and you are now in a position to make your payments on time. You must also have a legitimate excuse for falling behind… financial problems in itself would not be an adequate excuse. Loss of a job, death in the family or an illness would be an acceptable reason to fall behind on your Mortgage temporarily. Here is one example of a letter that the Mortgage Company is looking for. Please allow us to get you the foreclosure advice you are seeking. We can stop foreclosure on your home.

Name: (Your Name)

Address: (Your Address)

Mortgage Co: (Mort. Co.) Loan No: (your Loan Number)

I/We, (Your Name), are requesting that you review my financial situation to see if I/We qualify for any workout option.

I/We are having problems making my monthly payments because of financial difficulties created by (circle what applies):

Unemployment
Reduced Income
Divorce
Separation
Medical Bills
Too Much Debt
Death of my Spouse
Death of a family member
Payment Increase
Business Failure
Job Relocation
Illness
Damage to Property
Military Service
Incarceration
Other (Please Specify)

This difficulty or situation happened on or about this date??

I/We believe that my/our situation is (circle one) Temporary / Permanent

This is a brief account of the situation is as follows: (explain your situation… tell them you feel you can now afford your payments)

I/We, (your name), state the information provided above to be true and correct to the best of my/our knowledge.

Borrower's Signature

Date

Co-Borrower's Signature

Date

This letter is published as a courtesy of American Foreclosure Specialists. Our passion is to save your home from Foreclosure.

Remember... the hardship letter is just on piece of the workout puzzle. You need to meet other criteria for the mortgage company to approve you for a workout. If you don't know where to start, visit our foreclosure help page. There you will find sound advice on what to do if you are in foreclosure.

[ForeclosureHelp]

Did you get your hardship letter finished? Sounds like you want to do a loan mod.

If your 1st lien is upside down and you have a different 2nd lien... pay the 1st! Especially if there is no equity in the home...

We work with organizations that help people write their hardship letters so let me know!

[passmeby]

Yes, I got the letter done and faxed off. I got a letter back saying they would contact us within 30 days to see what can be done.

I only have 1 mortgage and I'm not upside down.

If they can't work with us, we're going to be forced to file BK.