TO WHOM IT MAY CONCERN:
RE: Bank of America Home Loan
HARDSHIP LETTER
I am submitting this letter of hardship in reference to my first (and only) mortgage with Bank of America on the above-subject property. I purchased the property in January 1998 and have lived there and continue to live there as my primary residence ever since. I refinanced my mortgage in June 2006 and Countrywide Home Loans held the mortgage at that time. I currently have an Adjustable Rate Mortgage at an interest rate of 8.45% soon to go to 10.95 and my monthly mortgage payment is $3,100.00 with a principal balance of $393,150.94. Bank of America Home Loans currently holds the mortgage of which I am approximately $74,000 in arrears. In June 2008, I married xxxxxxx . xxxxx is not on the mortgage note but is on the deed to the property.
I had already submitted two (2) hardship letters to Bank of America, through the National Home Retention Program, one on xxxxxxx, 2009 and the second one on xxxxxx, 2009. I was informed by Bank of America/Countrywide in June 2009 that my first hardship request was rejected because of unpaid property taxes on our home. My husband and I paid the property taxes on April 20, 2009 and subsequently resubmitted the hardship request on June 10, 2009. I never heard from Bank of America regarding the status of this second request.
More recently, in July 2010, I received correspondence from Bank of America Home Retention Division requesting that I apply for the Home Affordable Modification Program, which I did in August, 2010. I was approved for the program in January, 2011. However, the new monthly trial period plan payment of $3,190.00 was higher than my current mortgage payment. I advised the Home Retention Division that I could not afford the trial period plan payments but that I still wanted to avoid foreclosure and remain in my home.
I will do my best to describe the personal financial and medical challenges faced by my husband and I over the past three years within the confines of this letter. I appreciate the opportunity to explain the circumstances which have caused me to fall severely behind on my mortgage. Although we have done everything possible to improve our financial situation, the $3,100.00 per month mortgage payment is too high for me when considering our current situation and the arrearage of approximately $74,000 on my existing mortgage is virtually impossible for us to pay.
The summary of my hardship request is as follows: First, I was responsible for caring for my elderly Mother for nearly 15 years. She passed away on xxxxxxxx, 2006 after a long, debilitating illness. I was unsuccessful in getting any financial assistance from the Federal Government, the State of xxxxxxx, or from my only sister living in xxxxxxx to help me care for her while I worked. I paid a caregiver out-of –pocket $500 per week for the last years of my Mother’s life so that I could remain working. I had been working steadily at the xxxxxxxxxxxxxxxxxxxxx in a senior management position from August, 1997 until I resigned for medical reasons in November, 2008.
While caring for my Mother and working, I had neglected my own health. After my Mother passed away, my health had deteriorated to the point where I was required to have a number of major surgeries. In 2007, I had to have back surgery to repair a ruptured disc in my lower spine. On xxx, 2008 I had surgery on my head to correct a severe tinnitus condition in my left ear. I still suffer from significant hearing loss and routinely wear hearing aids in order to hear normal conversation. Then on October xx, 2008 I had to have a total knee replacement of my left knee, and on January xx, 2009, I had to have my right knee replaced. I later learned that this last knee replacement surgery was not covered by my health insurance which resulted in a charge to me of $51,651. Due to medical reasons as described above, I resigned from my position with the xxxxxxxxxxxx Authority where I had been making over $ xxxxxxxxx per year after over 11 years of service.
My husband’s elderly Mother moved in with us in August, 2007. Shortly afterwards, she was diagnosed with lymphoma cancer and underwent a series of successful chemotherapy treatments which ultimately put the cancer in remission. However, xxxxxxxxl had to resign from his job in March 2008 in order to care for his Mother and to take her to Baltimore, Maryland on a regular basis for treatments.
My financial affairs became in such disarray that I filed for Chapter 13 Bankruptcy on xxxxxxx, 2008 and my case was confirmed on June xxxxxxx (Case Number xxx). I was required to pay $1,140 per month to the Trustee over a period of 60 months. I was unable to keep up with the Chapter 13 Plan payments after paying approximately $17,000 to the Trustee. As such, the Court dismissed my case on xxxxx, 2009 for failure to make the payments under my Chapter 13 Plan. I subsequently filed for Chapter 7 Bankruptcy (Case Number xxxxxxx) which was discharged on xxxxxx, 2010.
As part of my Chapter 7 Bankruptcy, I was required to have an appraisal of my home. The appraisal, which was conducted early in 2010, confirmed that my mortgage was under water by approximately $175,000. I was advised, at that time, to surrender my home through the Chapter 7 bankruptcy proceedings since I owed more than it appraised for and my husband and I were unemployed and had no regular source of income.
xxxxxx and I remained unemployed for nearly two (2) years despite the fact that we assertively attempted to secure full-time employment. Between the two of us, 212 resumes for employment were submitted, ( See attached letters). We interviewed here locally in the xxxxxxxxx. metropolitan area as well as in California, Texas, Florida, Ohio, Iowa, and New Jersey My husband finally landed a good job as Manager at a major xxxxxxxdealership located in xxxxxxx. He worked about 3-4 days after which time he became gravely ill—he was in renal failure, had pneumonia, had a dangerously-low drop in blood pressure, and died, but was revived in the emergency room. xxxxxxxx was taken by ambulance to a local hospital where he spent almost a month in the Intensive Care Unit. Because of Insurance waiting periods, we had no health insurance and are now being billed upwards of about $60,000 for the health services he received during his stay at the hospital. Although he is better,he suffers memory loss and cannot remeber his way home at times. xxxxxxxxx still cannot work and has recently applied for disability through the xxxxxxxxxxx.
On a brighter note, in 2010, I finally got a job with the xxxxxxxxxxxxxxxxxxx Office of xxxxxxxxxx , as xxxxxxx Analyst. This is a field in which I have worked my entire career and already had 16 years of prior service . I started work on , 2010 and my annual gross salary is $87,758.00. My paystubs are attached to this letter. While the pay is about $50,000 less than I was receiving at the , I am very pleased to be working again.
Our home means a great deal to us but we still do not have enough income to pay our monthly mortgage payment of $3,083.70 and get caught up on the significant arrearage we have with Bank of America. Our home needs quite a bit of work to make it livable again, i.e. new septic system,( Backed up and overflowed), water damage to the interior, etc. However, if there is any glimmer of hope which would prevent our home from going into foreclosure, we are willing to work with you. Your assistance in helping us restructure our mortgage in order to lower our mortgage payment, lower the interest rate, and permanently reduce the principal balance is appreciated. Please advise us of all options available to us to stop our home from going into foreclosure. We are very anxious to reach an agreement and we appreciate your prompt response.
If you need further information, please contact me at xxxxxxxxx (Cell) or xxxxxxxxx (Work) or you may contact my husband at xxxxxxxx
Respectfully yours,
xxxxxxxxxxxxx
Michael S
United States
Germany
