Here is a list of items lenders may consider valid reasons for your financial hardship claim in your hardship letter:
1. Hike in your Adjustable Rate Mortgage
2. If the borrower is incarcerated
3. Downturn in income
4. Illness in the family making it difficult to work
5. Mounting medical bills
6. Job loss
7. Increasing child care expenses
8. Business failure
9. Death of a financial contributor
10. Divorce
11. Current or impending military posting of borrower or a financial contributor to another area
12. Damage to the home: fire, tornado, flood, vandalism, etc,
13. Moving for work
14. Other important items

Type of Hardship Letter: Loan Modification

1st/2nd/Heloc: 1st mortgage
Type of Hardship: Reduced income, medical
Property Category: Primary Residence
Lender: Chase

Chase Fulfillment Center
Mail Stop HMP-Missing Docs
4500 Cherry Creek Drive S. Ste. 960
Glendale, CO 80246-1531

To Whom It May Concern:

Re: Request for Loan Modification for property at _______________________

Loan Number: _______________

I’m writing to request that you help us avert foreclosure and continue the payment rate we’ve had with the recent trial loan modification plan Chase gave us. We’ve owned this home for nearly __ years and will do whatever we need to to avoid losing it.

Hardship:
____’s salary has been cut by about $____ a year, and her company can no longer afford to give her the bonus incentives that they used to. ____ is self-employed, and has seen a drop in income due to the slowing of the economy as well. Child care is getting more and more costly, with two children in daycare and another one requiring a babysitter after school. We are spending about $___ a month on childcare. In addition to these challenges, our children recently needed medical procedures that were quite costly. We have worked out a payment plan of $__ a month, but we still owe the hospital $_____.

Our debt-to-income ratio is now __%, which will significantly prevent us from keeping up with the monthly payments on our mortgage.

Status of payments/ Ability to pay going forward:
We are up-to-date on our monthly payments, but they have been lower after you extended a trial loan modification plan to us. If the trial lapses and the mortgage goes back to the original monthly amount, we will not be able to pay.

We have cut out all unnecessary expenditures, ____is working more hours to bring in more income and he is slowly gaining more steady clients. We have also worked with other lenders to get our hospital bills and credit card payments lowered, freeing up money to pay our mortgage. In addition, in _____, one of our children will no longer need after-school care, saving us about $__ a month, _____’s loan she took out against her 401k will be paid off as of , saving us another $_____ a month as well.

Request:
Due to the numerous financial hardships we’re facing, we are requesting that reduce our mortgage payment to around $___ a month, including taxes, insurance, etc. We have consulted a homeownership and financial services director to come to this payment amount. If you allow us to keep the current reduced monthly payment plan, we feel confident that our financial situation will turn around and we will be able to continue making the payments on our mortgage.

We’re grateful for your consideration of our request.

Thank you very much for your time.

Sincerely,

Enclosures:
1. IRS 4506-T
2. 2 months of recent paystubs
3. Most recent tax return
4. Monthly housing & loan obligations