advice on HomEq loan mod letter please

[Joel Fraser]

Below is the text of a hardship letter I want to send to HomEq, but would appreciate advice. I plan to send to loss mitigation and the executives at the same time too."This letter is a formal request for a modification of my ARM loan, which adjusts November 30, 2008. It is a 9.25% interest rate, and the interest payment is $7,371.09 per month. I respectfully request that the interest rate be changed to 5%, and locked for at least the next 5 years. I have been able to make the payments over the past two years, however, in order to do so, I have had to completely liquidate my six children’s college savings, take out a hardship disbursement from my small 401k savings, take two separate loans against that same 401k, and borrow from family members. At this point, I have no savings whatsoever; nothing for my children’s college, and only a small amount of money ($7,000) for my retirement that I cannot touch.I currently pay my mortgage at the end of each month, and as a result late fees have accrued in the amount of $ 5,796.80. After my twins were born, I had to pay over $4,000 in unexpected hospital bills resulting from their birth. I spent a year trying to convince the insurance company to pay these bills, but lost. The result was that shortly after I started my mortgage with HomEq, I had to push my payment to the end of the month in order to pay these hospital bills. I respectfully request that these late fees be eliminated, or rolled into the principal balance.I have tried to refinance this mortgage, but of course property values across the country have declined from two years ago, and with credit rules tightening over the past year (including the recent freeze from the banking failures) and it is impossible to refinance today.I have two student loans that I must pay. One is $909, and the other $405, a month I have depleted all the available deferment that is allowed each.If you modify the loan to the 5%, within two or three months I will be able to make my payments within the grace period, and a few months after that, on time each month. I will be a model customer.I want to explain my 2008 income so that you do not have a false impression of my future earnings. This year I received $58,000 in additional income that will not be repeated in 2009. $15,000 of it was non-monetary, meaning it is was trip from my company for eight solid years of service. That is a benefit that will not be repeated in 2009, 2010, or beyond. The earliest I would be considered again for such a benefit will be eight years from now, and it is non-monetary, so it does not help me pay my mortgage.The second additional income, $43,000, is identified on my paystub as “integration incentive”. This is money that my employer paid to me because my company was purchased by another company. In merger situations, may employees leave, and my employer paid me this “incentive” because I am a key, long time employee and they wanted me to remain with the new company. This is a good testament to my importance within the company. However, all of that money has been spent; I had to use all of it to pay financial obligations that I had to postpone in order to stay current on my mortgage, such as my religious tithing obligation. Please note, that this religious tithing that I pay is not negotiable. It is as important a religious principle to me as following moral rules such as not stealing or lying. I had hoped to be able to use the integration incentive to replenish my depleted savings, but that was not possible.The bottom line is that when you analyze my income, you must back out $58,000 from my earnings. Failing to do so will be irresponsible on your part, because it is money that will not be repeated in the coming years. It is not a normal part of my earnings.You have my current financial information, and see reality of my living expenses. I noticed that your list does not include such vital items as clothing. I am the sole financial support to a family of eight, and have managed to make ends meet. I want to pay my mortgage, and live up to my contract with HomEq, but I need your help. Please grant my request for this modification."