Hardship Letter to Stop Foreclosure

Are you currently facing foreclosure? Well, if you are then you must have already gotten a good head start when it comes to learning about the different ways through which you may be able to salvage your home. However, have you considered writing a hardship letter to stop foreclosure? If not then it is something that you ought to look into. This is especially true if you happen to be experiencing a short period of time wherein you might not be able to be on time when it comes to mortgage payments. How does it work? Well, if you are certain that you'll be having a hard time in the near future then it would be wise to inform you lender about it. For example, if your family experiences an urgent medical emergency wherein money is immediately needed then you might not be able to pay your mortgage for a good month or two. If this is the case, write a letter citing this reason and explain your problem properly. Doing so at the earliest possible time could actually exempt you from having to pay the penalties and fees that come with late payments. Through this letter, you can also negotiate a way for you to get your account updated once the problem period has been surpassed.

But does it really work? Most people would have doubts when it comes to the power of a letter when it comes to persuading the mortgage company to exempt you from paying penalties but never underestimate the sympathy that it might illicit from your lender. If written properly then it could certainly work. However, at the end of the day, it all depends upon the people to whom the letter is addressed. If not exemption then perhaps you might want to ask your lenders for a possible modification on your home loan so that you'll be able to make the necessary payments. For them, this is a much easier sell but of course, there are always company policies to consider. Some are flexible with regards to these things whilst there are those that are rigid when it comes to compliance. Now, in order to help you get started with writing your own hardship letter, here are a few things to keep in mind.

1. Be completely honest. Do not exaggerate nor make light of your situation. Remember that you are completely responsible for the contents of this letter as well as the data that you provide along with it.


2. Make sure that it's legible. If you are not too confident when it comes to how readable your handwriting is then perhaps you ought to consider typing it out and getting it printed instead. Of course, do not forget to include your signature at the end of the letter.


3. Do a follow-up. Remember to check with your lender if they received your letter and if they were able to read it yet. If it gets rejected then it would be wise to send in another one before seeking other options.

So there you have it, some tips when it comes to writing a hardship letter to stop foreclosure. Good luck!