Qualified Written Request

Sample Hardship Letter : To perform the most comprehensive forensic loan audit you should compile all of the loan documents you maintain and get all of the loan documents your lender maintains. A Qualified Written Request (QWR) is a written demand to your servicing company. After receiving a QWR, the servicing company has twenty days to respond to the request and forward a copy of all loan documentation on file. The servicing companies also have to suspend all reporting activity to the major credit bureaus and then resolve the issue within sixty days. Federal RESPA laws require the servicing companies to comply and respond within this specified time frame. A QWR will be generated by you and submitted to the servicer for every file prior to the completion of the forensic loan document audit.

Sample Hardship Letter

American Home Mortgage Services, Inc

Attention: Correspondence Dept.

Re: Loan Number: 1234511722

Name : Johnathan Jones

Subject Address : 12345 Erehwon Street, Heartland, OH 12345

To Whom It May Concern: Please accept this letter as a “Qualified Written Request” under Section 6 of the Real Estate Settlement Procedures Act (RESPA) to obtain copies of ALL documents pertaining to the origination of the above mentioned Clients’ current mortgage on the referenced subject property. Please see below for a list of documents needed.

Initial Loan Application and Final Loan Application

Executed Notice of Right to Cancel (if refinance)

Deed of Trust/All Riders

Note and All Addendums/Riders

Truth-in Lending Statements

Itemization of Amount Financed

Good Faith Estimates

Estimated and Final Closing Statements (HUD)


Title Report

Grant Deed(s)

Copy of Loan Payment History – This must include all payments made, all fees incurred, any and all escrow account disbursements and how payments were appliedIn addition to the above, please forward any and all disclosures, rate sheets etc. associated with the above transaction. Please note that all copies need to be clear and legible and all documents should be copied in their entirety.

In closing, We/I understand that under Section 6 of RESPA you are required to acknowledge our/my request within 20 business days and try to resolve any issues within 60 business days.

Please forward requested documentation as soon as possible and we look forward to working with you on a solution that benefits our mutual concerns. Thank you for your time.


Communicating a Hardship Effectively

Effective communication is the single most important aspect of describing hardship issues in your hardship letter. Many modification requests fail because the homeowners can not tell their story in a simple way. It is easy to forget there is a real human being analyzing the hardship letter within the lender’s or servicer’s loss mitigation department who is responsible for determining the existence of a real hardship. With that said you must keep your hardship letter simple and get to the point quickly.

Loss mitigation departments are overwhelmed with foreclosures, short sales, and modification requests. They do not want to read a ten page letter regarding the loan officer who put them in the loan, why they bought the house, the memories they have had there and why they want to keep their home. When writing the hardship letter, keep the letter simple and to the point. In addition, handwrite the hardship letter. The fact is that people personally relate to handwriting more than a typewritten letter and this includes the lender’s or servicer’s loss mitigators. What follows on the next pages are perfect examples of sample hardship letters, a financial worksheet, an income and expense worksheet, a sample loan modification request and a sample stacking order for you to use. Notice as well that on the loan modification request and on the sample stacking order for a loan modification you will need to include documentation of your home’s value. You can obtain reliable documentation of your home’s value from a local Realtor, Title Company or from an appraiser.

How to Determine if You are a Candidate for a Loan Modification

Lenders and servicers will, in general, look for one thing when you submit a modification request. They look for a documentable hardship of course, but at the end of the day if they decide to grant your request for a loan modification all they really want to know is if you can afford the new payment(s). This is the big secret behind getting a loan modification approved. There is, however, an art to making loan modifications work. You must disqualify yourself from your old payments and at the same time qualify yourself on a new payment structure. It sounds complicated and it is at first but you will quickly learn important strategies for effectively processing loan modifications. To understand what the lender or servicer considers qualified, you have to know how lenders calculate your income. The income you can use to qualify for a modification is different from traditional income calculations used to qualify for traditional loans. Moreover, the difference in the qualification guidelines is typically in your favor.

For a modification, you can qualify based on your documentable total household income. As such, you can count income from almost any source: Grandma’s SSI, income from child day care services, from a second job paid under the table, etc. so long as it can be proved. Proof must be in the form of bank statements, 1099’s or in some other documentable form as outlined in the submission paperwork you will provide the lender. In addition, if only one of two spouses was on the original loan, the other spouse’s income can count so long as it is documentable.

Once you calculate all documentable monthly income from all household sources you then have what you can present to the lender as the new qualifying income. To calculate a qualifying monthly mortgage payment, use the benchmark fully amortizing 5.00% rate on whatever the new balance might be, counting arrearages if they are added back into the loan. WARNING: this is only for a general qualifying exercise only; do not expect this rate or payment! If the payment at 5.00% is just too high, then you may not be an appropriate candidate for a modification. However, you can still request help with other services such as a deed in lieu of foreclosure, a short sale or postponing as long as possible a notice of trustee’s sale in an effort to help you transition to more affordable housing.

Loan Mod Process

Sample Hardship Letter : Using the forensic mortgage loan document audit as basis for pressuring lenders, you will move lenders to take immediate action to stop an impending foreclosure and keep your home safe and place yourself in a better financial situation. This audit reveals various federal and state violations or errors in the original loan documents. Our internal auditing statistics show that four out of every five loans we have audited have significant violations.

In the beginning of the process you will need to send your lender a Qualified Written Request (QWR). The QWR is a formal demand that the lender must comply with under federal law to produce copies of your loan documents within a specified timeframe. Once you have collected all of the required documentation from your lender you can proceed to perform a forensic loan audit. Sample Hardship Letter

Once the audit has been completed and if violations are found a formal request for a loan modification is sent to the lender along with an abundance of highly organized financial information that makes the best case possible as to why you (a) deserve a loan modification and (b) can afford the new payments. This is a long process that requires patience and negotiation skill.

Are Hardship Letters Just for Loan Modifications?

The vast majority of hardship letter sites on the internet are devoted to loan modifications and helping consumers draft hardship letters for them. However, hardship letters are required and can be used for: short sales, credit card debt negotiation, requesting lower interest rates on credit cards and installment loans and a host of other consumer loans.

The reason hardship letters are so effective in recent history is that lenders are having a difficult time keeping their paying clients paying their bills on time. The debt settlement industry is going through an enormous boom at present because of the state of economic affairs in America and all over the world. The moral of the story is that a well crafted hardship letter accomplishes a number of goals:

1.     It puts your lender on notice that they may be losing a great deal of money if they don’t pay attention to you.

2.     It makes your lender understand that you’re not some “run of the mill idiot” that doesn’t care about their finances.

3.     It tells a personal story in a short time frame that loss mitigation agents may connect to personally

4.     If you’re hardship is related to active military deployment or other legally protected statuses, your lender may have to legally come to your assistance.

5.     It establishes a record of correspondence with your lender. This is important if you ever decide to file a lawsuit against your lender.

There are a number of other reasons that hardship letters can help you and they are not all related to loan modifications. If you need a sample hardship letter and you can’t find one on this site then please leave us a comment and we will begin the work of drafting a sample hardship letter that will work for your specific contextures – Just for Loan Modifications?