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.
I have had no problem making my payments for over four years now including extra principal whenever possible and do not want that to change. The main reason that caused us to be late is that I purchased my home at 2005 in May. At that time I was employed by Motorola and business was very good. My salary and the possibility of a promotion and raise made me sure that I could easily support my mortgage. Although, holding my position so strong for so many years, unfortunately, a downturn in the market caused my company to reduce its workforce and I was laid off (loss of Job)

It has been a challenge to meet our financial obligations since May 2009 when I lost my job and currently only receiving unemployment $530 per week starting June 16th. My wife teaches private tuition to small kids at home and brings in $400-$450 per month depending on kids leaving the tuition permanently and new kids joining. This makes total of $2600 per month in earnings while my mortgage payment is close to $2200. Our income does not suffice. We have been diligently sticking to a monthly budget of only using cash and have used our tax refund to pay off some of our credit card and assist in paying down our other bills. We have even cut out pay television to cut expenses. I am currently looking for a second job to assist with paying our bills but have been unsuccessful due to the widespread unemployment rate and so many people applying for the same position.

We are now desperately trying to recover from months of being in the red financially and are scrambling and struggling to pay on bills but cannot seem to catch up to loss of job. Since the purchase of our home, our resale value has declined approximately 20% which has made it impossible to refinance for a lower rate. We have been actively adhering to a strict budget for the expenses including the expenses including COBRA payments, car insurance, food, medical and utilities bills which was developed during a credit counseling session with a, Certified Consumer Credit Counselor with Consumer Credit Counseling Service. Due to our situation improving and due to our diligent efforts we believe this is something we can recover from if we only were given a chance. We strongly believe that a loan modification would benefit us in our current situation.

Considering my current income, there will be no way I can afford the payments since May. We tried to refinance out of this loan but cannot due to the fact that we cannot get the value on the property that we need in order to refinance. Hopefully there is way to renegotiate the terms of my current mortgage loan modificatoin to avoid default and stop foreclosure on my home under the new OBAMA Stimulus package plan.

We have not been late or missed any payments as of yet, but I fear that time will come. We have done everything we can to stay in this home, and I only ask that you do the same. We have sacrificed a lot to keep this home and stay out of foreclosure but I am not sure we can maintain it any longer. A loan modification is our only option before we decide to pack up and leave our home behind.

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