Many people get in to hardship with their mortgage, especially people with a disability who have reduced or lost earnings capacity so I’ve made a sample disability mortgage hardship letter.
I hope this may be useful to any of you that have suffered a disability (join the club) and need some help. As stated in the sticky, this should just be used as an example. You should write the disability hardship letter for your lender in your own words, and perhaps even consult with an attorney in the process. With that said, here is an example I got and spinned a bit for the borrower that can’t pay his house note due to a disability:
Country Wide Home Loans
Attention: Home loan modification Department
We are writing this letter to explain the extreme financial hardship it will be for our family when our loan adjusts from a 6.8% interest rate to a 10.2% interest rate in December 2008. This interest rate adjustment will cause our payment to dramatically increase in the amount of $1795 per month on top of our current payment of $4234.10 increasing the payment to $6029.10 per month. Our current income does not support an increase of this magnitude. As a matter of fact, a monthly increase of this amount will ruin us financially and within a few short months of this adjustment we will surely fall into foreclosure as we will not be able to afford the monthly payment.
My husband, Chris was the wage earner in the family. Chris was struck by a delivery truck at his work, and he has undergone several operations on his spine. While his health is currently stable, he has been placed on permanent disability. Our sole source of income now is the disability payments from Chris’ employer. While these payments provide us with enough to pay the current mortgage, we will not have enough to pay our home loan once the rate adjusts in December. We have lost a total of $1,800 a month in income (the difference between Chris’ former pay at work and his disability payments), and we are already spending just over 50% of our income one the current mortgage payments.
We would appreciate the opportunity to work out a loan modification where our interest rate will be frozen at the 6.8% interest rate for the duration of the loan, if the rate is just frozen for 2 to 5 years we will find ourselves in the same situation in a few short years from now.
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 preserve 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 Country Wide to resolve this situation. If you have any questions please contact us at xx.
Sincerely,
Disabled Home Owner
If anyone has any suggestions on how to improve on the sample disabled home loan modification letter, please let me know.
Thanks all!
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