Hardship Letter

One of the items your lender or servicer will ask for during the loan workout or loan modification process is a hardship letter. A hardship letter is a written explanation as to what “event” has caused you to fall behind on your mortgage and it vital in helping you stop foreclosure.

This letter acts much like an outline or biography of your current “life” issues that are affecting your ability to meet your financial obligations.

Please keep in mind that your are composing the hardship letter for your lender or servicer and because of the foreclosure crisis, they are extremely busy and back logged. So, with that in mind, do not write a book because most likely it will not get the attention of an over worked, $12 an hour loss mitigation employee. Keep it short and to the point. Usually 1 or at maximum 2 pages is more than enough to get your point across.

Here is an example list of hardships that lenders consider during the loan workout process:

  • Adjustable Rate Mortgage Reset- Payment Scock (uncommon, but we will see more lenders accept this in the future)
  • Illness
  • Loss of Job
  • Reduced Income
  • Failed Business
  • Job Relocation
  • Death of Spouse or C0-Borrower
  • Death
  • Incarceration
  • Divorce
  • Marital Separation
  • Military Duty
  • Reduced Income
  • Medical Bills
  • Damage to Property (natural disaster or unnatural)
  • Other (Please Specify)

Now that you understand what your lender or servicer is looking for, it’s time to sit down and write a hardship letter. I made it easy for you by giving you a couple templates below that you can use as a boiler plate for your own letter. Make sure you make it unique to your situation.

Loan Modification Attorneys

Remember that your hardship letter is only one piece of the loan workout process, but key in helping you avoid foreclosure. You will still need to jump a few hurdles with your lender before they will approve you any kind of work out plan.

Example Hardship Letter:

Name: (Your Name)

Address: (Your Address)

Lender Name: (Your Lender)

Loan #: (your Loan #)

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.

The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.

(The approximate date of hardship and we believe that our situation is Temporary or will be Permanent.)

Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.

We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.

Sincerely and Respectfully,

Borrower’s Signature


Co-Borrower’s Signature


Hardship Letter Contributed by LoanSafe.org Forum Member
September 7, 2007
To: Countrywide Mortgage account # 058989482

Re: Mortgage modification program

Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2008.

Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default and help stop foreclosure on my home.

Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.

I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.

The main problem is that my property is now worth about 5-10% less than what I paid for it which is preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications.

I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income.

Thanks you for your time and consideration.

The materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.


101 Responses to “Hardship Letter”

  1. [...] Write a hardship letter. Here in an example hardship letter You’ll need to provide this hardship letter, documenting the reason you are unable to afford [...]

  2. Oneida Rodrifguez says:

    I heard on a loan modification you can delete the second mortgage if you have a firts and a second. Is the true?

  3. Steve Lee says:

    That is untrue because the trust deed who holds the 2nd position of your property wants to get what they can from you. The 2nd trust deed can not foreclosue on your house, unless the 1st trust deed is in default.

  4. Joua Xiong says:

    Is it better for me to paid a special loan modification company to handle the loan modification from my existing lender or sure I just try to work with my lender on a loan modification.

  5. Thai yang says:

    Please call me for free consultation as needed. You better have a company to represent you.

  6. Thai yang says:

    Here is my number 559-776-2373

  7. alicia garcia says:

    I have a 3o year fixed rate at 9%. I used to have good credit but when I refinanced I went through Ameriquest. Now Citibank owns the loan..I believe ameriquest no longer exist. I did not even know that citibank was going to be my lender. Will I qualify for a modification of my loan..I cannot afford what I am paying now. Due to the housing marker I pulled money out of the equity I had in my house and I refinanced. But now my house is not worth what it was in the past and I owe more money than what my house is worth. I was told that only option arms qualify for loan modifications is this true?

  8. Axel Bello says:

    Nope, give me a call and the new american dream can help.
    our number is 888-DONT CALL THESE SCAMMERS (edited by Moe Bedard)
    Thre is hope don’t waste time.
    Looking forward to your responce

  9. hrico says:

    Is it wise to pay up front for loan modification? May individual state not to pay anything until finalize. Many unfaithful company that take your money and do nothing.

  10. soa says:

    If you need help with your modification drop a note. I got good help from a company.

  11. Barry says:

    Need help working with HomeQ for a modification to Make Home Affordable – fell behind hoping for better days back in October 08 – needless to say – the days have not come – we’re still behind and need help fast.

  12. Rob says:

    There are so many variables to Loan Mods. Some lenders reduce rate, some reduce both rate and principal and some reduce rate/term/principal and capitalize or forgive missed payments. It depends on your lender and their ability and willingness to help adjust your loan. Achieving this on your own is very difficult. My company will negotiate with your lender on your behalf. If you’d like some free, no obligation information, let me know. \

  13. Oliver says:

    Loan mods are all in the Hardship!

    This is your opportunity to “sell” your case to the lender… a good hardship letter will go a long way in getting you what you want!


  14. scott trapp says:

    Im in trouble. Just found out Rodis law grp. is a scam and im out $3,000. I need help with a loan modification.

  15. Wilshire says:

    Your post is very well crafted and I have learned so much about you interests and Bank of America. I

  16. Polding says:

    We just bought a house last 09/2008. unfortunately, i dont work full time now and my wife is the only one who has a more stable job, and were having a hard time with our mortgage, though we havent missed any mortgage payments yet. Can we apply for loan modification even though we havent missed any payments yet? before we become delinquent? Thanks. Please help

  17. Alex says:

    Greetings. I’m an attorney and member of the Real Estate, Probate, and Trust Section of the Florida Bar who has been assisting clients in avoiding forclosure for over 20 years. There is a lot of valuable consumer information on LoanWorkout.org, and I’ve enjoyed my visit. I can’t emphasize enough to you good folks that before you hand your money over to someone who’s promised to help you save your home, find out who you’re dealing with. What are their credentials? How many complaints have they had? What are they charging you? There are some legitimate companies who will assist you for a very nominal fee, but it’s not all that different from buying a car.. You’ve got to check under the hood. Is it going to run after you buy it? What’s a reasonable price? You can’t just cross your fingers and hope it’s not you who is taken for a ride. Be smart.

  18. Olivia says:

    I am a single mom, purchase my home 10/2006, did not understand much of what i was doing and getting into, because of my credit score, and no down payment, i got a adjustable rate and high mortgage, i was desperate at the time. I am not behind on my mortgage however with my mortgage rate going up from when i purchase and paying other bills i am struggling, i was denied a loan modification recently due to salary to expense ratio. I honestly did not feel i did a good job writing the hardship letter, please show me how to write this letter as my plan is to re-apply with the help of Hope for Home Owners Agency. Thank you

  19. Meghan says:

    My husband & I are in the middle of trying to get our mortgage modified. I cannot stress enough to anyone else in this predicament to do your homework! Don’t hand over your hard earned money to a company that promises you the moon and the stars without checking them out first. There is a company we contacted that wanted to charge us 2k, told us to stop making our mortgage payments altogether and forbade us from speaking with our lender. All of these things raised reg flags, and when we checked them out on BBB, they received an F for various issues consumers have had with them. The most serious being no results, a home in foreclosure, and little or no contact with the company after they received their fee. From everything I’ve read, you, the borrower, need to contact your lender and make amends.

  20. shelly says:

    what can i do i just got a letter with a court date to foreclose on my home in 30 days,dont want to lose it cant afford a lawyer really but will if i have too what can i do help anybody gone thru this please

  21. ROSA JAIME says:

    I have a 30yr fixed at 5.5% i orginally purchased my home for $233,000 is now worth $180,000 I have been current on my payments for 5 years
    however doing the math each month i should be negative 600 – 1,000
    we budget very carefully ( never eating out buying sale items ) i currently ask my bank if i would qualify for a loan modification – based on the math over the phone they will be sending me an application. IS IT TRUE YOU NEED TO HAVE LATE PAYMENT’S ON YOUR MORTGAGE TO QUALIFY FOR A LOAN MODIFICATION ? BASED ON MY FAMILY’S INCOME MANY PEOPLE CANNOT BELIEVE WE MAKE OUR MORTGAGE – I DON’T WANT THIS TO HURT ME. I’M CURRENTLY IN DEBT WITH OTHER LOANS BUT ALWAYS MAKE ATLEAST A MINIMUN PAYMENT. WOULD THIS HURT ME?

  22. rene says:

    I purchased my home 7 years ago got a 5%. Based on some family situations i’m applying for a loan modification. If my lender decides to approve it and reduced my interest for 3 years what will happend to my current interest rate? last thing i want is to have a 3% for 3 years and then have to refi
    and get an 8% for the rest of the life of the loan.
    If my loan modification gets approved will this trash my loan?

  23. PAUL S. MCGARRY says:

    Are there progreams sponsored by Dept of Human Services(DHS) that can aid in mortgage payments. Please advise me on hoiw top obtaine lower mortgage payments before I am in default so far I have not missed any payments but medical bills and lowered income are making default possible

  24. Irene says:

    I help people modifying their loans. The payment goes with the process of of loan modification. There’s no upfront fees.
    I can help you:
    If you are behind with your mortgage payments.
    Pay High interest rate.
    Pay interest only.
    Adjustable rate.
    Unable to refinance.
    You’re in hardship to pay your mortgage.

    I have team of mitigation and lawyers expert that can help you out.
    Call if you have question and needed help: 303.827.9400
    We work with people from any state.

  25. Mattie White says:

    I am in the same predicament as many listed on this site. My income has changed and I do not want to lose my home. I have already discovered that there are scammers who are willing to take you for everything. I need help, please!

  26. Cindy says:

    Worthy advice, I got stuck using the predators in the modfication scam. I fought back, I called the Bank of America. Disputed the amount to these thieves. 2979 to be exact. I got a temporary credit on my checking accct. ie debit card used. waited 3 months for the permanent credit as the bank paid them the money but i had faxed 37 pages noting the MA state law against getting money before a modication is in place! and I filed with the Attorney General on this. copies to the bank on this too. I got my money back. In modification process, call the bank and talk to the legal dept only! ask for it~! my husband is on unemployment and it will stall my foreclosure after 9 months of waiting and no payments as we could not afford the large payments . follow up every week on your paperwork and do all the paperwork they ask for and keep copies of your own on EVERYTHING! good luck folks.

  27. Betty says:

    My husband and i have tried to do the loan modification on our own and the lender has giving me the run around. We don’t know what else to do we have a 80/20 loan with really HIGH interest rate. And of course we can’t refi. we and upside down loan. I have been talking to an attorney but they are asking for 2k and we are not a position to do so.What are other options?

  28. esme says:

    You can always try to negotiate your self with your lenders.

  29. Neener says:

    My mortgage is held by Chase – we are not behind or having financial problems but due to declining home prices we cannot refinance for a better interest rate as we now owe slightly more than the home is worth. Called Chase – spoke w/2 representatives who independently verified that their Making Home Affordable refinance and modification programs require NO CLOSING COSTS or FEES at all. None. Not rolled into the loan. Just none. Then I confirmed that this is the RULE OF THE PROGRAM, not just Chase’s rule.

    So you guys who are paying people for assistance? DON’T. There are scammers everywhere, companies/brokers/attorneys waiting to take your money for something that is FREE. Call HUD, or Fannie Mae, or Freddie Mac. But please don’t pay a “facilitator”.

  30. If you have a really high interest rate on the mortgage of your home, you really have 2 options:
    1. Negotiate the rate. Someone a couple of comments above me suggested it as well. This is fairly straightforward. Interest rates on anything, especially mortgage loans and credits cards are very negotiable.
    2. Refinance your mortgage somewhere else. This is not for everyone, but it could help.

  31. rawle says:

    I am in the begining of a divorce and want to keep my house; but due to one income and my income was reduced since we bought the house. what are my chance of a loan modification?

  32. steve says:

    Many of you bring up great points.

    Yes, you can negotiate a loan modification with your current bank. However not all of us can get through to the bank, for those that have jus had enough and know they can qualify, you cna just hire a professional to help.

    That’s what I am here for.

    I can refer you to many HUD counselors or other people in the business that can do a loan modification with no upfront fees. There are some who collect a fee after the loan has been modified.

    Email me with any questions or advice.

  33. carolyn berrian says:


  34. Droopy says:

    Lender are reluctant to mod your loan, i believe if you balance is somewhere near the market value, they wouldn’t help.

    If you have visit foreclosure home sale, previous owner will destroy the home because they are pissed when their lender will not assist because the stimulus money is our tax dollars.

    I don’t blame them for destroying the property, actually I support their destruction. Lender is not going to send you a thank you note for leaving the place clean and in excellent condition. If my place foreclose, I would do the same.

  35. Katyra says:

    I used to work in the executive resolution team for a major mortgage company. No matter what these “loan modification” companies say, THEY CANNOT GET YOU A BETTER DEAL. They will be offered the same modification terms you would be offered if you contact your mortgage company directly. Most morgtage companies prefer to work with the borrower directly, and I know some have are trying to put policies in place that they will no longer negotiate with these types of companies. While there are a very few of tehse companies that are attempting to help borrowers, most of them are scammers and opportunists willing to take advantage of you to make a buck.

  36. Check out NACA.COM. I got my mortgage modified through them. GREAT! CLICK ON HOME SAVE PROGRAM, completely free!

  37. albert says:

    what’s your experienced dealing withlocal credit union since they are not part of the bailout program and most of their mortgage loan are portfolio loan. Information i got is mostly when you deal with credit union its only 50/50 chance success rate.

  38. Stacey says:

    I am working with wells fargo they are my current mortgage company i requested a modification due to a cut in pay. I have done everything they have asked and the agreement they came up with was to raise my payment almost $500.00 a month???? So i called was told not to sign agreement send it back, and they fixed the innacurate income information they had and told me they were flagging account to be re-reviewed. I called back 3 weeks later and they assured me i would hear something soon. Now 2 weeks later for some reason no one can explain im in forclosure and if i want a different modification i have to start over. Why does it feel like they’re playing games with me, I dont know what to do. Any advice?

  39. Georgia McFarlain says:

    I applied for loan mod with my lender, GMAC and they put me on a 3-month trial payment for October, November and December. Before making the third payment for Dec., GMAC wrote me a letter stating that my application for loan modification was approved and they required for the signed and notarized loan modification Agreement to be sent back to them along with my “contribution” in the same amount as my trial payment. Should I assume that this “contribution” was the 3rd trial payment due in Dec. or is this aside from the 3 trial payments? I also would like to know if those trial payments I made were paid towards my mortgage. Where did that money go exactly?

  40. i would like to have a hardship letter in my email address sample please

  41. I need to submit a letter to my lender, can you please email me a blank form for me to fill up?

    Thank you,

  42. sonia ong says:

    can someone help me do a hardship letter for my loan modification pls. my husband left us almost a year ago and he just started giving a child support last month for 230.00 every 2 weeks. i am the only one left paying for all the bills and mortgage payment. csn u please help me do a harship letter and email it to me. thank you for your help.

  43. Julie says:

    Lenders are no longer requiring proof of hardship. You need to briefly explain what the situation is – just as you already did. The underwriters are only looking to see that you filled in the blanks.

  44. Hoa says:

    I need a contribution letter to add to hardship letter. Can someone help?


  45. Floretta says:

    What do you write when you are already in a bankruptcy trying to save your home and trying to get in the Obama plan? I mean do I start from when I initially got in the bankrupcty or where I am at today and cannot afford to continue with the bankruptcy.

  46. Hoop Jumper says:

    WELLS FARGO makes you jump through sooo many hoops it feels like it will never end. Are they doing this to anyone else? They hold my 1st & 2nd loan, but that doesn’t seem to matter to the 1st. I’ve paid on time, had good credit & now with the building industry upside down, my business has temporarily tanked. I turned to Wells & they had me send in the same paperwork every month since August. I’ve monitored my “solution” online since this began; watching it go from pending, to in review, to completed. ~ Only to be allowed a 3 month breather with no payments -I asked if I could begin trial payments (at a reduced rate)- but nope, they are HELPING by not collecting mortgage for 3months — only to COLLECT ALL OF IT at the end of 3 months!?! If I could’ve paid it all, I would have. Talk about a SCAM! Wells Fargo gets bail out money from us taxpayers & their statements show that they are “helping” their customers with workout solutions. Has anyone had sucess working with this company? If so, what miracle worker did you talk to?? Lately (the past month), when I call, there line either A) disconnects or B) says to call back. How many hoops does it take to get to the end of a remod-roll?

  47. Tina says:

    Hoop Jumper,

    We are right there with you with Wells Fargo. I am not impressed with their service and never have been. I would suggest you try calling the Exec. off team @ 1800-853-8516, they will help you better than the mitigation team. We have been trying to work with WF for over a year. We called this number and was told they will have an answer in 14 – 18 days!! I am praying they are right. Good Luck.

  48. Deb says:

    We have been dealing with Bank of America now for almost a year about home mod. I lost my job after an illness. Still haven’t found a job & still no completely healthy. We got our mortgage in 12/07. We both worked then. We have never missed a payment ever. But after the job loss and hospitalization we exhuasted our savings and even borrowed from our 401k to keep paying the bills. We applied with B of A 3 different times only to be told after calling several times we didn’t qualify at this point. then I agian called and gave them our info in Oct 09. We did hear anything until Dec 15, 09 when we recieved a fedex package from the bank. my heart sank not knowing what it was. I opened it up to find a trial mortgage modification for 3 months. we had to send a bunch of paperwork in, they said after the 3 months that they then send the paperwork the “investors” and they come up with a loan modification for us. So not only does bank of america doesn’t own our loan but they will not tell us who does. I have learned one thing make sure you document every conversation you have with the bank. You think that they would want to help you so that they don’t end up losing money because of foreclosure, you think they would want to prevent it. but no they just want to give you lots of crap and no help. every time i call i get disconnected, am hold for hours, only to be transferred to person to person and have each one of them be rude then again disconnect me. i have never wanted to choke someone so bad in my life as I have the employees of b of am.

  49. Leslie says:

    We just started the loan modification process. We are with Chase and had gotten 4 months behind. When got one month behind, we called and they were unwilling to help. The 2nd month, same thing. 3rd, same thing. Basically, you need to be really behind in your payments to even qualify. I wish I had not cashed out our retirement savings to pay the mortgage. Here is the advice I can offer (take it or leave it!): 1) If you can’t make the mortgage pmts, STOP paying NOW! and call the mortgage company so they have it on record that you are being proactive. 2) Do NOT spend any “extra” money you have from not paying the mortgage.(ie, if your mortgage is $2,000 and you have only $1,000 but decide to follow my advice step #1.) Save that money for when you get approved for the Loan Modification. 3) STOP going out to eat. STOP buying unnecessary things for now and STOP using the charge cards. Buy your groceries with CASH so that you can SEE what you are spending. 4) Go to the library and check out Dave Ramsey’s Total Money Makeover, read it and start getting yourself out of debt FOREVER! Cuz, face it: the odds of you winning the lottery are suh-lim!

  50. Since finding your web site. I have gained a lot of info on loan modifications. I’m sure you have heard this story over and over, we also have been duped by Green Credit solutions of $3495.00. I am going after the mortgage company who acted as their agent. My attorney advised we could take them to small claims court. We sure are going to try.

    Thanks again

  51. Moe Bedard says:

    Thanks for saying thanks Shirley. Yes, go after the creeps who referred you to Green Credit. What they did is akin to driving the get away car for a bank robber to rob a bank and then claiming you are innocent because you didn’t rob it. That doesn’t cut it with the courts and most all drivers are convicted complicit criminals who are as guilty as the person who robs the bank.

    I wish you the best Shirley!!!

  52. Denise says:

    Just so you all know, I worked for a mortgage company for many years. Most all mortgage companies WILL NOT do a modification. First, you have to be delinquent for them to even assist you. If you are not delinquent, they call that eminant default which means you are not in default but in jeopardy of going into default. Second, once you are more than 3 months late, especially in the state of CA, the mortgage company will refer you to foreclosure and tack on thousands in fees making it IMPOSSIBLE to become current. It is best if you are requesting a Modification, NOT TO USE one of those lawyer firms that promise they can do the Modification for 3K . Instead, seek out your own modification. Get your W2′s a good hardship letter stating why you fell behind or why you cannot make the payment. Simply saying you are not happy with your loan and your propert value fell is not going to work. You have to really have a hardship. Loss of income, lost job temporarily, etc. Then, if approved, the will put you on a 3 month trial but you have to make the payments or start the entire process. Keep making the payments while the company is making the decision and never get more than 3 payments behind or forget about it. If all else fails, go to a not profit like NACA.com or ACORN.com and let them do your modification. They are quick and free and the mortgage companies are scared of them. This is your best bet or lose the house.
    For those simply trying to lower the payment just because, you need to try refinancing or sticking to your payments. If the mortgage company does not see a hardship, loss of income etc. They will DENY you.

  53. Denise says:

    What happend with Green Credit?? They are scams and you should report them. I have heard of them before

  54. Denise says:


    If you filed for a Bankruptcy then you cannot work with the Mortgage company to save your home. They are not even suppose to take your calls unless it is the bankruptcy department and they cannot modifiy your loan. You need to talk to your Bankruptcy Attorney, let them know you want to keep the home and work it out that way. They will not and cannot take your payments while you are in a bankruptcy unless you are doing a Chapter 13 but still talk to your attorney

  55. Denise says:

    Mortgage companies do not care about you losing your home. They make more money from you foreclosing and claiming the foreclosure as a loss. Most companies you THINK are your mortgage companies are not. They are just servicing your loan. You loan has an “investor” and they are the ones who make all the decisions on the loan modifications and not the mortgage company. They WILL NOT tell you who the investor is unless it is Fannie Mae or Feddie Mac. All other investors will not tell you who they are. Good luck all on those Mods. Few people get approved and they fall so behind on the loan that it is impossible to get ahead. Another thing, sometimes if they do approved the modification, they will ask you for all this upfront money so I hope you are saving those mortgage payments that you think you are getting away with. Put that aside. You never know what they are going to ask of you. Take it from me, I worked for a VERY famous mortgage company in the Office of the President and they do not care. I also did mortgage loans. Try to write a letter to the Office of the President or go through a non profit like NACA.com

  56. Cathy Bates says:

    Please leave a hardship letter in my mailbox. Thank you.
    My salary has been reduced to nil and am finding it hard to pay mortgage and bills. Cuts in hours and days has left me with a yearly income of half of what I normally earn. Example are: 2007 = 32,000, 2008 = 35,000, 2009 = 15,800. I am presently working at the same job, just not making the same amount of money. So, I need a letter that would state nicely why I can not afford the present mortgage amount without going into forclosure. I am not behind at this stage, simply because I am making it worse by using credit cards to fix the problem. I have been looking for another job since June of last year. Not working at this. Need help. Thanks again.

  57. Hard Times in IN says:

    I am currently working with my mortgage lender to obtain a loan modification but I am working through a third party due to my mortgage being a FHA loan. I have been doing this since Sept 2009 and at this time we are still working through this process. My situation is this: I owe approximately $130,000 on a home that is probably only worth $80,000 at best (just a “guesstimate,” as I haven’t had an appraisal of the house or a comp of the area), I’m working on a loan modification as I have not been able to pay my mortgage since Aug 2009, and I’m engaged to be married Aug 2010 – and my future spouse does not wish to move into my home but rather purchase a new home away from the area I currently reside.

    What I am wondering – and I think I may already know the answer but I just need confirmation on this – is would I be able to move from my current home and obtain a mortgage for a new home, especially since I’m currently working with my current mortgage lender on a loan modification for the existing mortgage I have? She believes renting my current home would suffice this, but I believe that, given my current poor credit rating, obtaining another mortgage would be foolish right now; rather, I feel we should set the loan modification & make all future mortgage payments on time for at least two years before considering moving anywhere.

    Can you give me your opinion/insight on this? I just don’t feel having two mortgages is going to help with anything, as I’m already having a hard time with just one.

  58. John says:

    I’m currently in an interest only loan. The loan is a 30 yr term. The first 15 years is interest only, the last 15 is adjusted dramatically. I still make all payments on time and am not financially in distress,but I am cutting it close after all bills are paid. I’m paying on a mortgage that will adjust in 12 years to a fee that I will not be able to afford. Plus, I would like to have paid off a lot of my house by then. My home is less than what we paid for it and we cannot refi. I would like to have my loan modified so that I’m actually paying it off even if that meant my payment went up just a little than what it is now. Do I have a shot with a modification?

  59. KATY says:

    American Servicing Compant/Wells Fargo i think are playing around with distress homeowners.. i have a interest only loan with a rate of 9.62%, can not effort to pay they monthly payment-i have been trying to negotiate a modification since June 2008-have been place in 2 different trial period and have made those all payments on time only to find out at the end of trial that i am either denied the modification or that the modification approved is to increase the payments to a much higher amount…..i truly believe that ASC is playing games with homeowners they have giving me the run around for over a year now, i even tried to go through a company to do the modification i paid the a little less than 3k and they got me a modification that i had to reject because the terms were worse than what i originally had…now after a year of trying and having problem with my husband, we just decided to separate…i want to stay in the house with the children if i am giving an affordable modification….THE MAKING HOME AFFORDABLE program seems to be a very fix program because the payments can not be more than 31% of the gross income….what are the chances that ASC/Wells Fargo will approved for this program, my husband agreed on giving me a monthly income of 1550.00 since i would stay with our three children and i make 3336. which under that program the monthly payments would be 1515.00….Now ASC wants to have a supplement letter income from my husband and HIS last months pay stubs (husband’s name is not on the loan) only mine, what are my chances of getting this loan base on the company history and can you please help me write a supplement income letter to my email address?

  60. mary says:

    katy please email! i am also dealing with wells fargo. i just started a loan modification with them. they put me on a temporary loan mod. they put me on a furbearance modification. i think that means at the end of the temporay mod. , i am responsible for the past due owed.

  61. Andrea says:

    Have a loan with Wells Fargo, some one of the many loan mod reps said that UBS is the investor. Been getting the run around for over a year now. Did as directed an contacted the company before the default happened to get assistance…nothing. Once we fell behind, then we got into the endless loop with the loan mod dept. 2nd loan belongs to Homeq…they too have no solution unless loan#1 gives one.

    Currently going through NACA to get a forbearance due to job loss. Wells fargo offers a 6month forbearance in exchange for a chunk of cash up front and all the missed payments at the end of the forbearance period. WTF? It appears to me that the bank sells overpriced property, forecloses, writes off loss then gets to sell it again (albeit at the real value)…where is the incentive for the banks to work these loans out?

  62. mary says:

    Has anyone had any help from Wells Fago?

  63. dawn says:

    i also have wellsfargo loan, going on second req for loan modification and have been getting run around, just getting in deeper with oweing more on back principle, trying to keep on monthly payments and want to keep our home just want to lower our montly payments….i agree is wellsfargo helping anyone?????? or just giving customers the run around….

  64. lisa says:

    I have been working with Wells Fargo since June ’09…i have never been late on a mortgage payment and have always paid the amount owed…they put me on a trial period Oct-Dec….have kept my documents up to date…had a huge snowstorm and called them to tell them i would get the next documents to them within a few days i was trying to dig out….i call them a few days later and they say they booted me out of the program because i was a few days late sending in the documents…i tell them i was under 3 feet of snow…anyway now they say i owe $6,000 by March 1. I said what happened to the trial payments i’ve been making since October? None of my payments have been going towards my monthly mortgage…they put them all towards back fees….then they said i never paid Jan and Feb…I said yes i did…none of that money has been going towards my current monthly mortgage…they said after dec my payment went back up to the original amount…i told them i had asked them that and they told me to keep paying the trial payment until further notice….this was not correct info so now i am in the hole for $6000 and I am someone who has never been late with a payment my whole life and was just trying to some help because business has slacked off…they only lowered it $200 a month. So here i am a homeowner who has been responsibe and has paid on time and now they have screwed me and told me they have reported it to the credit bureau that i am deliquent because i only paid the modification payment…i said that is what you told me to pay…i’ve only done what they have told me…find out they have been charging me fees to have someone drive by my house to make sure i live there.WTF? Wells Fargo has done nothing but screwed me….and every time they sent me a mortgage bill i would call them and say hey you are saying i owe all this money WHY? and for the last 5 montsh they have told me to disregard those statments…so i do and now they say Oh well , you owe us $6000 by march or we will start foreclosing…ON SOMEONE who has only done what they told me to do…Does anyone have any answers?

  65. A&B says:

    We have an FHA loan which is soon to go 90 days late due to both of us loosing our jobs. Flagstar Bank is telling us they will not even open discussion with us until we go 90 days late, this according to FHA guidelines. Does anyone know what our chances of getting a loan mod would be if both of us are collecting unemployment? Has anyone had luck getting a loan mod with Flagstar Bank?

  66. mary says:

    that really stinks! i can’t believe that they would do that to you. I guess just let everyone out to beware of wells fargo cause it sounds like they screw everyone. and its not fair that other banks help you and they dont. they should be there to help us, but they are not…. my question is ……..WHY?

  67. Moey says:

    Hey everyone,
    Our government really sucks, while they get paid top dollar, live in great beatuiful homes, we struggle to make payments on small basic homes in smaller suburb areas. Please don’t give up however, we have been working with our 80/20 banks for 1.5 years now and just now we are getting a modification and the bank is just adding a big chunck to the back of the loan and raising our already high loan amount. I’m not sure if there even is any good loan mods but one thing is that the bank is trying to make our payment affordable and that’s what really matters at this time of hardship. Try to keep your home for a lower payment even if it is upside down because rent is too high right now and just wouldn’t benefit many people. Modification Companies can’t do anything for you that you can’t do yourself. Although you might get the run around and it may take a really long time, nobody else is going to bother in that really long process for you believe me its to big of a hassle. Hang in there however long it takes, and save your money. Don’t pay someone do it yourself, the results will most likely be refreshing. If the banks play games just play games back. If you can’t afford the loan mod they offer, stop making the payments again and let them know your hardship again. Do what they ask and let them know your needs. However, keep in mind all of the banks are different. Hope this helps!!

  68. true says:

    Why does everyone think that they are entitled to a mod?

  69. lisa says:

    Does anyone know what this holding account is that Wells Fargo puts some of your money in? I am trying to get my loan modified since June, never been late on a payment..they tell me for three months to pay this new rate, i do , now they keep sending me bills saying i owe $6,100…the difference between my regular payment and the trial payment was $200 so where do they come up that i owe them this?? ive been paying like $700 more a month to catch up and each bill i get says i owe more than the last month so where are they putting my money….

  70. Shawn says:

    Can anyone give me an advice on dealing with Wells Fargo.
    I would like to hear from anyone who managed to get GOOD results from Wells Fargo.
    Your Positive result only will be appreciated.
    I have a First TD plus a line of credit both from Wells Fargo.

  71. Candice says:

    I really need a sample hardship letter fast. I just went through a divorce, so now Im a single mom with one income now. I went through NACA but the said i did not qualify for SAVE THE HOME program. I have 80/20 and taxes / insurance is seperate. I atempting to go with the lender B.O.A. , which request a hardship letter along with RMA form, checkstubs, bank statments and 4506-T form. Im behind on April payment as of now, just dealing with all the lawyer fees have put be behind financially. I dont want to loose my house but I dont know what else to do.

  72. disgusted says:

    i have a loan with chase wamu i put in 2 times for a loan modification paid them 5 months on time and they keep denying me you can talk to your blue int he face i don’t receive 1000. a month anymore for childsupport i don’t get any more bonues and my mom who is also on the loan had her hours cut to 32 per week and she is 75 years old then chase told us that they had to pay our taxes and insurance to get the modification my regular mortgage was 1392.00 paid 5 months of 1535.48 on time now they want 1934.98 they can keep it.

  73. Confused in East Coast! says:

    My lender is BofA. I have a deadline to do eminent default application by tomorrow. Recently separated from finance who was paying a chuck of the bills. Bought home at $250 K @ 5.5 interest rate. Foreclosure home in area is listed for $123 K. Can not refinance due to drop in prices. Have limited spending, eating out etc. Found your comments helpful but I am not sure if I should do this with BofA or NACE. Please advice asap. Also, please send me a sample hardship explanation letter to my e-mail.

  74. Shonty says:


    Does anyone have any advice for me? My husband walked out of our 10 year and has refused to provide me with any spousal or child support. I recently applied for a home modification and was denied due to my debt to income. I have paid all my debt with the exception of one credit card with a balance of $4000.00 all I have now is my mortgage and home expenses. The bank is allowing me to apply again and requesting that I include my current debt & expenses. I’m not sure what else I’ll need to say in my letter but I NEED HELP. I have a beautiful home in a nice, safe, family oriented community the perfect place to raise my son. Does anyone have any advice?

  75. Moe Bedard says:

    I am sorry to hear about that.

    I advise you to go to your County child support office and file a claim. Please go to my forum at http://www.loansafe.org/forum where there are thousands of people just like you helping one another through this process. You will find all you need there. You can try getting mortgage assistance from a non-profit like http://www.995hope.org, 888-995-hope for help.

  76. Gil says:

    I tried for 9 months to modify my loan with Wells Fargo (1st loan) and Bank of America (2nd loan). I had lost my job and my finance situation began to take a hit. However, before my credit got ruined, I filed for chapter 13. I wiped out the 2nd loan and all my credit card debt. I began repairing my credit with secure credit cards. In less than a year, my credit score is in the 600′s. It slowly going back up,but I purchase items in cash! I recently took a job and now I have positive cash flow and savings. Bk saved me.

  77. Tom says:

    does my loan need to be “in distress” before I can apply for a modification ?

  78. Kessily says:

    I am in the process of going through a loan modification right now, and I have had excellent advice all the way through from my lower. The best thing to do is call your bank and work with them directly BEFORE your payments are late. This shows them that you are being responsible and letting them know there is a problem before you are actually in arrears. In fact being behind on your payments actually excludes you from some of the modification programs they have!

  79. MARINA ALLEN says:

    I have been working with chase (my house mortgage co.) on loan modification since October of 2009.

    4 times, as I was requested, I faxed about a total of 135 pages, mostly repeated forms and the 5th times I mailed about 24 pages. every time the day or a week later I called to confirmed. Many times I have been told that they have all the papers scanned and down loaded into their system.

    Yesterday a got the same papers that they sent me about 2 times before, asking for the same exact papers that they have been requested and I have been sending to them over and over, again.

    I have all the documents. also I made notes of every body at chase that I talked to, date, time and their telephone numbers.

    I talked to an agent about selling my house. she said that in this market, the only chance I have to sell it fast is by putting it on the market as a short sale and If I do that, I will lose everything I put in it and on the other hand I can’t hold on to it much longer without borrowing money from some one (I tried refinancing, and that didn’t work) and so far nobody has enough money to help me.

  80. DAVID says:


  81. Farmhouse168 says:

    I am a BOFA customer. Lost my job and I have Unemployment benefits, but I have been able to get temp jobs as I go along. However, I still have UI benefits. I just did a forbearance. It took a year to get it. I finished that and paid back the money they forbeared. During the time, I got letter’s of notice of intention. They started accruing late fees. The agreement said I won’t be charged late fees and my loan would be caught up once the Forbeared money was paid. On my own I just applied for MHA.
    Does anyone know how they will handle the situation, if I have both UI and some income from temp jobs? (neither is really perm.)
    I am basically taking temp work, and have managed to keep employed this year all of but 6 weeks so far. Of course at a lower rate then I used to make but more then UI. I gave them both the UI letter, and the paystubs.

    Also, I was told I could not apply for another program till I finished the forbearance. I also recieved a letter that if I don’t pay the payments on time, (the current original payment after Forbearance), I won’t be considered for the other programs.

  82. [...] effects and HAMP Program here is an example and description of how to write your hardship letter Hardship Letter | LoanWorkout.org Best Regards, Alex Reply With Quote   + Reply to Thread [...]

  83. brad whitsell says:

    I stop making my payments in August of 2010…I was wondering..How long do I have before Suntrust Mortgage kick me out…3-4-5 months…I have a couple of tentants….I want to give them a chance….I only have recived 1-certifield letter to this date..It was 60-days in default…dated Sept 7,2010…Thanks Brad

  84. pivotalrole says:

    I’ve been working for over a year to get help and was encouraged by BofA to run up any and all debt necessary to keep making my payments. The idea was that the more current my account, the better the chance I would have to receive help. Months into the melee I was then told that I had to be officially “past due” before they could even submit my request for help. So after tapping every resource at our disposal we had to purposefully miss a payment for them to even begin the process. Painfully, we wouldn’t have been able to make that payment anyway and I told them that a month prior.

    The latest is that I was told that the loan holder wasn’t participating in Help for Homeowners at all. The loan holder is Wells Fargo. Moments ago I got off the phone with WF and lo and behold, they certainly are participating. I’m sick of BofA outright lying to me. I’m just about ready to go the news with this. I can’t tell you how many hours I’ve spent on the phone only to receive conflicting information from one call to the next. And no one is held responsible….ever. They could tell me that a unicorn was on its way with my modification documents and I would have zero recourse to call them on that. The only thing I ever get is, “I’m sorry they told you that, but they were wrong.”

  85. pivotalrole says:

    Kessily–apologies, but that sounds exactly like a script I heard from BofA many times. As proactive as I was, it didn’t help. I contacted them more than 6 months before my resources ran out and it did me no good. I can’t speak for any other lenders, but BofA is misleading customers to drag things out. Even if you are making trial modification payments (which I am) the longer they can keep you on the line, the worse your account looks and the greater justification they have to ultimately deny you.

  86. REV. LJ says:


  87. Brenda says:

    I just want to take this time to think you so much for creating this web page for people like me who needed help with dealing with the mortgage companies and banks. I did my homework and use your shell hardship letter but modified it to my specific situation. I even it took a step further and told them what I could afford to pay(which was an expectable amount) and what I was cutting back on in order to make it work. I know timing played a key in it also, now that the large mortgage companies are being investigated for fraud. It only took them three business days to respond back with an “YES” and I got an great interest rate with cap after five years and my first payment isn’t until January 01, 2011, what a Christmas present!!!!
    Thank you,

  88. Moe Bedard says:

    That is awesome news. Congratulations! Thanks so much for saying thanks Brenda!

  89. T.L says:

    we really need to come together and get these loan companies dealt with, why are we letting this happen to us and we stand back like sheep lead to our down fall, what ever happen to we the people, no one in washington give a f… about us, they expect us to pay them keep them in a big house keep them eating high on the hog and keeping us poor.what are we doing people. look at your home you worked hard for it its your safe zone not any more, the people that dropped your house worth were these people, they made it to put us in thie situation, and they are the credit card people lets get some move ment going agaist them like the tea party did, bring our homes value back, find legal ways to stop them in their tracts. i tried that program that obama have with my company and they made every excuse not to make it happen such as you fell to send us all the paper work we asked you for in a timely manner that was bull shit i sent them everything they asked for and sent it in the same day it was asked for, and i have others telling me the same thing is happing to them, i just got a letter that states that my loan couldnt be done because they didnt get the paper work that was asked for bullshit, how many people is that happening to, id love to know,and who can we talk to without paying out the nose to protect us and our kids

  90. Anonymous says:

    NACA (Neighborhoold Assistance Corporation of America) can help with free counseling and everything!
    They are a great company to help with the HOME Save Program.
    Visit their website at http://www.naca.com or call 1-888-404-6222 (option 5.)

  91. Vcar says:

    Has anyone ever got a loan modification through State Farm ? Recently divorced, struggling to hold on to my home. Left with the debt of the home. (which I am wanting to hold on too). Which owes 171,000, during divorce process home appraised at 145,000. (upside down). My house payment is 1400.00 month, I am 2 months behind in mortages. I have my children 50/50, my child support is 500.00, I am behind in credit card payment, truck payment. We were able to make payments during marriage,it was a struggle but we did it, now with only 1 income, Need for a loan modification is the only way I will be able to provide for my children and have a home for us.

  92. Elena says:


    I am currently in the process of doing a loan modification. I have read a few of the messages on the board and just wanted to inform people that there are many agencies that help with modifications for FREE. Please do not fall victim to individuals saying they can help you for a fee. There are many gov’t agencies that are set up tro help with loan modifications and processed applicants are paid for by the government. HUD has a program – just google for information in your area. for government agencies to help with loan modifications.

  93. Bubbles says:

    Well Fargo is the worse mortgage company ever! They also told us they could do a modification. They told us not to pay until we hear from them after waiting and submitting everything they requested (3 months) they told us we are deliquent, we can afford our home and that they expect payment in full and the list goes on……..run for your lives!!!!!

  94. Viola Chambers says:

    If you live in california you do not have to repay your second mortgage hope this helps.

  95. Mary says:

    Going through loan modification with BofA. Every person I talked to gave me different information. Before I went into default, I talked to them and they said they couldn’t help me and that I should still make my payments because my loan is an FHA loan. Finally, I couldn’t pay anymore then they sent me a letter that they can try to help me. When you apply for loan modification with BofA, you have to go through the collection department to do the application process. Did it the first time and was told that I would receive a Fedex package to indicate what I need to to (to do list). AFter 3 weeks of waiting, called them and the person I talked to said I should still wait for it and that it is on its way. After a week, called them again and was told that my application has been denied because they didn’t receive necessary informations. I told him I was waiting for my package. He said no such thing and said I should have faxed them in. No one told me that nor a fax number was given to me. Then I reapply and waited. Called and was told again to wait for a package???? Told them about my previous situation with them and I was told again, that the package is coming and that I should wait for it. That is the protocol. A week later I called and a fax number was given So I faxed my stuff in. AFter a day, I called to see if they got my fax, I was told ‘no’ and to wait for the package. Now, I’m going through the same shit again, reapply. WTF???? This has been happening to me ever since August of 2010.

  96. Kevin says:

    I have an option arm that is going to adjust in Oct. with Chase. I am not delinquent, but very close. My over-time in winter months saved me. I am going through a divorce that is not finalized yet and I have child support that I am paying. I want my kids to remain in a house they know is home. Their mother keeps moving them around without a lot of instability in their lives. I requested a loan modification package from their way-forward dept. that I am filling out. I was told that since I am current on payments that it is a good thing and I would be dealt with quicker compared to being delinquent. I heard different, does anyone know. Also I asked who owns my loan and the rep told me WMMSC Wamu mortgage securities copr. Aka Chase owns my loan. Anyone with any experience or info to assist would be greatly appreciated.

  97. Vera says:

    I am about to start process of loam modification because my income went down and my property value is less than I owe to the bank at the moment. I received a lot of paperwork from Indymac and they are asking about how much money. What is the good thing. not having any is not good because than I am not worth saving and to much they will say that I need to spend what I have for rainy day. Anybody knows anything about this?

  98. Vera says:

    I am about to start process of loam modification because my income went down and my property value is less than I owe to the bank at the moment. I received a lot of paperwork from Indymac and they are asking about how much money. What is the good thing. not having any is not good because than I am not worth saving and to much they will say that I need to spend what I have for rainy day. Anybody knows anything about this?

  99. Alfonso says:

    Anyone out there who are doing a loan mod, please read SB (senate Bill) 94 be advice this applies to California residence only
    this was signed into law by the California State attorney general
    in 2009 to report any scams toll free number 1-800-952-5252
    Go to googles search ( SB 94 )

  100. Sally Franks says:

    I received a modification from bank of america that the first time just rolled in what I was late and with the same interest rate and the same payment. I request a different modification, which took months….worse results…..rolled in what I was behind….interest rate stayed the same…..payment went up $600. Bank of AMerica gave me the run around for so long….modification tooks over 8 months. Any advice on what I should do, get a lawyer?

  101. We have applied for a loan modification and were just notified today we were denied due to our credit scores. My husband was involved in an accident that rendered him disabled and we have had many, many medical bills, loss of his income, etc. Yes, our credit scores have fallen..but all due to the past 2 1/2 years since the accident. I thought we fit the profile for a loan mod. I am so discouraged by the denial letter. Any thoughts would be appreciated.