If you feel you are in danger of losing your home, perhaps you should try a hardship letter to stop foreclosure. It won't take you too long to construct, and you may be able to save your house, or at least buy some extra time to make it happen. There are several types of hardship letters to stop foreclosure, but they are all really designed to do the same thing. Here are some things you need to consider, along with a free example, or sample, you can use to help construct the document.
Do these things work?
When you write a hardship letter to stop foreclosure, they may have some success, depending on the mortgage company and the details of the loan. When well constructed, they ultimately help you reinforce your case in court, showing that you have been communicating with the bank along the way. This is really a key to saving your home. The hardship letter to stop foreclosure it really one of the first steps you can take. Try this first, but you may want to explore financial assistance to stop home foreclosure.
A hardship letter to stop foreclosure may not, by itself, stop the process. What you are really doing here, is trying to extend the time you have to stay in your home, so you have a better chance of keeping it. Buying time with the mortgage company may give you enough time to explore the other options out there, which makes it a successful tool to use, when you are in financial trouble. The sample hardship letter to stop foreclosure is sort of a generic example, but one that can work for you.
Essentially, when you use this or any other sample hardship letter to stop foreclosure, you are creating a paper trail. This paper trail can help you in court, should the process get that far. You will be able to show the judge that you have been communicating, offered specific details, and provided the mortgage lender a specific plan of action. When you write a hardship letter to stop foreclosure, you must have a specific plan of action.
What do I include?
Your hardship letter to stop foreclosure should include some very specific information, designed to help you out from a legal point of view. While this is not going to serve as a catchall, it will help your cause. Here are just a few examples of what you should really include in your financial hardship letter to stop foreclosure. As you format the hardship letter to stop foreclosure, it may help to make sure you include the following:
Description: Your financial hardship letter to stop foreclosure should really include a brief description of how and why you have fallen behind in your mortgage obligations and payments. It's really one of the most important pieces of information the form should contain.
Documentation: Provide any proof you can when you format your hardship letter to stop foreclosure. This could include copies of pay stubs , or virtually any other supporting data you can come up with. This by itself will not stop the mortgage lender from moving forward, but again, it will help you buy time, and possibly save your home.
Timeframes: Your hardship letter to stop foreclosure should really include specific timeframes. This includes dates that you lost your job, had a decrease in income, or other factors that caused the financial woes. In addition, you may wish to detail how much time you need to get caught back up on the loan. This may buy you a little time as you try to save your house from your creditors.
What you are asking for: When you write the hardship letter to stop foreclosure, you should be very specific in what you are asking for. This could include a short term forbearance of payments, elimination of late fees and penalties, and several other things which could help your cause with your creditors. The mortgage could have a high rate of interest, which you would like to have reduced, for example. Financial woes happen to all of us, but taking the initiative to keep your home is what separates you from many others. The hardship letter to stop foreclosure is really what gets the ball rolling.
NOTE: Be sure to document all correspondence with your creditor. Simply writing a hardship letter to stop foreclosure is not enough. Include times, dates and any other relevant information. This includes written correspondence and phone calls. Since you could face your creditor in court, you will need to have your ducks in a row, so you have a better chance of winning. Your hardship letter to stop foreclosure is just the beginning of the process.
Dear Sir or Madame,
I am writing this letter in an attempt to stop foreclosure on my home.
I am experiencing financial hardship due to … (give specific examples; lost job, medical bills, etc.) This has caused me to fall behind on my monthly payments. This first occurred in... (give specific time) As you know, this correlates with the timeframe when I fell behind on my payments.
I have used your bank for ___ years, and am asking for some assistance. I would like to ask that you… (lower the interest rates, forbearance of late payments, refinance options, etc.) This would allow me to get caught back up with my payments.
This is a temporary situation. I am actively seeking… (new employment, injury attorney, etc.) I believe I can get back on my feet in… (give timeframe – don't exaggerate or minimize)
I have enclosed copies of.., (include copies of paystubs, medical bills, late notices, etc.) for your convenience.
May I set up a time to meet with your in person? Please contact me at… So we can make arrangements for repayment.
With this sample hardship letter to stop foreclosure, you have made your case pretty well. You have given specific examples, told the creditor exactly what you needed to stay afloat, and offered specific timeframes. Your hardship letter to stop foreclosure will also need to include all relevant documents to support your claims.
How long do you need to wait to buy a new home after foreclosure? Just in case the hardship letter to stop the process doesn't work.