A foreclosure hardship letter is an integral part of Loan Modification or Short Sale package. When homeowners are facing foreclosure, these documents are submitted to the Loss Mitigation branch of the mortgage lender. Loan modifications are offered to homeowners who have the financial quality to become current on delinquent payments. Short sales are offered to homeowners who do not have the financial means to pay their mortgage payments. Lenders who accept short sales offers agree to accept less than is owed on the mortgage note.
For most people, the foreclosure hardship letter is the most difficult aspect of loan modification or short sale procedures. It can be excruciatingly painful to express on paper the circumstances which caused the homeowner to fall behind on their mortgage payments. Many citizen are intimidated by the hardship letter. They don't know what to say or how to format the letter so it is easy to read and understand.
Mortgage
Keep in mind, foreclosures and short sales are handled by the Loss Mitigation branch of your lender. Employees of this branch are referred to as Loss Mitigators. Before you can submit a loan modification or short sale package, you must receive approval from the Loss Mitigator assigned to your account.
More than likely, you will have ample opportunities to personally speak to the Loss Mitigator handling your account. These individuals deal with homeowners in financial distress on a daily basis. Take advantage of building a relationship with your assigned mitigator and ask questions to help you best understand what your mitigator expects. Loss mitigators can make or break your deal, so always treat them with respect and provide them the information they request.
Your foreclosure hardship letter will be read by your personal loss mitigator. Comprehend these individuals receive dozens of hardship letters daily. Therefore, it is crucial to keep your letter short and to the point, while outside pertinent facts.
When composing your hardship letter you can whether write it by hand or type it. If your handwriting is illegible, it is best to type the letter or have someone else write it for you. The foreclosure hardship letter is one of the most crucial elements of your loan modification or short sale package, so take every precaution to ensure the Loss Mitigator can as a matter of fact read and understand it.
Real estate experts propose using a firm format for the foreclosure hardship letter. This involves placing your name, address, city, zip and phone number at the top of the page. Leave two spaces, then write the name of your loss mitigator, name of your mortgage lender, along with their mailing address. The next line should consist of the current date. Place your loan number underneath the date. The body of the letter should be in the middle of four and six paragraphs. Close the letter by signing and printing your name.
The following is an example of the foreclosure hardship letter. You can make adjustments to the text depending on if you are seeking a loan modification or short sale arrangement.
Bob and Jane Smith
123 Any Street
Your City, State 12345
Tom Jones
Usa Lender
123 anywhere Avenue, Suite A
Anytown, State 12345
Current Date
Re: Your Loan number (include whether Loan Modification or Short Sale)
Dear Mr. Jones,
We are contacting you today to request a (loan modification or short sale) for our property placed at (insert address, city, state). We appreciate the opportunity to clarify the circumstances which have caused us to fall behind on our mortgage payments. Although we have done all inherent to enhance our financial situation, we are still short on the money owed to you.
The presume we have become delinquent in our mortgage payments is (explain the presume here). At this time we do not have adequate earnings to pay our regular monthly mortgage payment. We are implicated that we are falling further behind and will not be able to pay what is owed. We have every intention of paying what is owed, but at this time do not know how to achieve this. Therefore, we are turning to you for assistance.
We are asking for observation to temporarily cut or dangle our mortgage payments for a few months (or allow us to sell our home via a short sale). Doing so, would help us get back on track. Our home means a great deal to us and we desire to work with you to keep it out of foreclosure. Please propose of all options available to stop foreclosure (or start a short sale) at your earliest convenience. We are anxious to reach an deal and appreciate your prompt response.
Respectfully yours,
Print name of Borrower(s)
Signature of Borrower(s)
Loan #
Address
Phone
email address (if applicable)
It is imperative to send the foreclosure hardship letter via certified mail with a return receipt requested. This will ensure you have proof you sent the letter. The return receipt must be signed by someone at the lending convention and the signature card will be returned to you in the mail.
Foreclosure Hardship Letter - Sample For Bank Loss Mitigation group
