3 Tips for a Financial Hardship Foreclosure Letter

Here are 3 Tips for writing a Financial Hardship Foreclosure Letter that will show your lender you are interested in remaining in your home. If you are facing foreclosure and want your lender to modify your loan terms so you can stay in the home you'll need to convince them that doing so is in their best interest.

  • Employment StatusChanges in employment are the number one cause for financial hardship. If your income has been reduced because you've lost your job or your hours were cut back you need to let the bank know. It's not enough to just state this fact though, you need to include proof. Mention this in your financial hardship letter and include a letter from your employer showing reduced hours or show your unemployment stubs.
  • Highlight the Income - Banks will always review your income before agreeing to any changes. You want to show them how your current income has changed since you signed the original loan agreement. Include copies of recent pay stubs and show how they have been reduced.
  • Make a Recommendation - Let the lender know what you can afford. If your mortgage was $1,000 dollars before and you can only afford $200 per month now, let them know because they may agree to the new payment amount.

Remember, in the eyes of most lenders, something is better than nothing.  The worst thing you can do is to ignore their letters. Call your bank to determine who your financial hardship letters needs to be sent to and get it there as soon as possible.

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