If you are currently facing a looming foreclosure, you must know how to write a good hardship letter. A hardship letter will explain your delinquency and would probably let your lender do some adjustments for you to catch up and stop your foreclosure.
A hardship letter must be honest. Only the true and current financial situation must be written. Explain truthfully how your payment became aberrant.
But you must also be very convincing. Make sure that your letter will help you have a second chance and totally stop foreclosure. Use all your writing skills to persuade your lender to give you another try.
Never attempt to add up stories and lies. Lenders are experienced hardship letter readers so they can smell the fishy things added up.
Prepare a complete household budget. This will be the lender’s basis for the loan modification and payment plan. Once you have passed a household budget, this would not be changed easily so make sure to include everything.
Make sure that you can actually pay the budget you have submitted. Be sure you are realistic. If you can not afford the budget, better sell your home. Know your options.
After the budget preparation, start with your hardship letter. Have the important details like: vital statistics (name, property address and contact number). The letter does not need to be too long. A short but warm letter may be best to explain your current situation. Do not attempt to lie. Explain the incident that caused your delinquency (death in the family, illness, accidents, family conflicts), ensure that it is just temporary, and that you can now pay your mortgage. Significant dates may be needed to.
Then, write a statement that you have only wrote the truth at the best of your knowledge.
If you think you cannot stop foreclosure alone, you may seek the help of a professional.
So, if you have received a notice of foreclosure, it is best to do steps on stopping foreclosure fast. There is no time for denial, face foreclosure and fight it fast. As simple as a letter of hardship can do a lot to help stop foreclosure.