5 Useful Steps to Write a Hardship Letter and Stop Foreclosure
Many of us must have heard of the term “Hardship Letter” before, but how many actually know what it means and how does one utilize this letter? For your information, a Hardship Letter is a frank letter that is addressed to your creditors in order to postpone or re-negotiate the terms of your mortgage payments when you are unable to service the payments promptly. It is more of a letter that explains the reasons and causes of why you have missed payments, and works as a method to help you find a solution for your predicament with your creditors. In order for the Hardship Letter to serve its purpose well, it has to be well-written and drafted. Thus let us look at five useful steps and ways to write an excellent Hardship Letter to help you stop home foreclosure.
1) Decide whether you want to write the Hardship Letter yourself, or hire a consultant to write it for you. Hiring a consultant could prove to be expensive, thus it is best that you write the letter yourself, but ensure that you do a comprehensive research beforehand to make sure that you write your letter properly. If possible get a few samples of them from real estate agents so that they can guide you in writing a good document. The more personal the letter is, the better your chances are to deal with the creditors.
2) Remember to be completely honest when you write your letter, you are completely responsible for it, thus all the information and data that you provide with the letter should be genuine and not fabricated in any way. It could be hand-written, or typed-out.
3) Provide all the relevant information that is needed for the creditors to review your application. Important information includes date, personal details of you such as address, contact number, loan agreement and details, explain on your current financial situation and why you have failed to pay your monthly payments, as well as supporting documents and data. Some of the details that your creditors look for are such as pay-cuts, retrenchment, an increase in expenditure that is beyond your control, and other similar details.
4) Propose a solution to them, to help you catch up on missed payments by requesting for a temporary postponement of payment. Or even better if you could negotiate a better deal with them to help you lower monthly commitment figures until your finances improve.
5) Contact them after a week or two to check if they have received a letter, and be fully committal if they would like to meet face-to-face to work out a solution. If your first Hardship Letter is rejected, you could probably send in another one before opting for other options.
Using a Hardship Letter to stop foreclosure is a proven method, and has helped thousands of families save their homes in the past. You could be one of them as well!
Find out more information about stop home foreclosure and hardship letter to stop foreclosure via StopForeclosureReality.com.