My Hardship Letter

[Mike]

This is what I have put together for my mortgage company. Can anyone read through it and let me know if there's anything I should change before sending it off?THANKS! I am writing this letter to explain what an extreme financial hardship it has been for my family when our loan adjusted from a 7.25% interest rate to a variable rate of up to 14% in February of 2007. Although we have tried to maintain a great payment record with HomEq this rate adjustment has caused our payment to climb and our other debt to dramatically increase as a result. Our current income cannot continue to support these increases and we fear that they have begun to ruin us financially. Since the rate increase, my wife and I have both been taking on side jobs to help us stay afloat. However, gas prices have become extremely high, and the cost of the traveling has almost negated our efforts. Also, since we cannot afford medical coverage, we had to pay for emergency dental visits on several occasions with on a credit card that is now maxed-out with a balance of over $7000. We have been trying very hard to make ends meet but 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. I assure you we have every desire of retaining our home and paying what is owed to HomEq, but at this time we have exhausted all of our income and resources so we are turning to you for help. Our situation is getting better because like I stated above, my wife and I have combined forces and are working to increase income by taking on more work to ensure stability and growth in our finances and we feel that a rate modification would benefit us greatly. We would appreciate if you can work with us to lower our interest rate back to it’s original 7.25% so we can keep our home and also afford to make amends with our debtors. Attached is all of the information you need: 2 most recent paystubs 2 current bank statements 2008 W-2’s Please take the time to review the information we submitted and consider our request. It is very important to us that we keep our account in good standing and work to rebuild our credit rating as well as protect our main asset....our home.Thank you in advance for your time and consideration in this matter. We are looking forward to working with HomEq to resolve this situation.