Foreclosure Hardship Letter
The foreclosure hardship letter is perhaps the most important aspect of obtaining a loan modification or short sale approval from a mortgage lender. Borrowers facing foreclosure who want to stay in their home and have the financial means to make mortgage payments can request a loan modification. Homeowners unable to meet their financial obligation can seek relief by requesting a short sale; an agreement where the lender accepts less than is owed on the mortgage note.
Before submitting the foreclosure hardship letter, Borrowers must receive authorization from their lender to apply for short sales and loan modifications. These transactions are usually handled by the lender's Loss Mitigation Department. Once real estate enters the pre-foreclosure stage, the lender assigns the account to a representative known as a Loss Mitigator.
Loss mitigators work with distressed homeowners every day. Their primary role is to ensure the bank receives adequate compensation for their loans and keep losses to a minimum. When approaching loss mitigators it is imperative to remain calm, explain your situation and clearly express the outcome you desire. Realize, bank loss mitigators can be your best friend or your worst enemy. Always be respectful and provide them with requested information in a timely fashion.
Once approval has been granted, it is time to construct the foreclosure hardship letter While it can be tempting to explain everything that has caused the mortgage delinquency, it is important to keep the hardship letter short and to the point. Realize loss mitigators receive dozens of foreclosure hardship letters every day. They do not have time to read long letters that outline your entire life.
There is some debate over whether the foreclosure hardship letter should be hand written or typed. Most experts claim a handwritten letter is better. However, if your handwriting is illegible or you have trouble with spelling and grammar, consider having someone else write the letter for you. Regardless of whether you write or type the foreclosure hardship letter, make certain the Loss Mitigator can read and understand it.
Click this link to view a sample foreclosure hardship letter. Adjustments can be made depending on if you are seeking a short sale or loan modification.
Once complete, send the foreclosure hardship letter to the assigned bank loss mitigator via certified mail with a return receipt requested. Doing so ensures you have proof the letter was sent and received.
Foreclosure and short sale arrangements can be intimidating. However, it is important to take immediate action to stop foreclosure. Being proactive demonstrates that you are serious about rectifying the situation and can buy you some time to get your finances in order or locate another place to reside.
If you are facing foreclosure, contact Simon Volkov today. Simon is a private real estate investor who specializes in foreclosure and short sale real estate transactions. There is no charge to consult with Simon regarding your real estate dilemma.
We also offer an abundance of information in our comprehensive foreclosure and short sale article library. Here you can find advice and solutions to help you save your home or minimize the impact of foreclosure.