Stop Foreclosure – Foreclosure Prevention

Many home owners face the foreclosure when they go behind in their payments and unable to meet their financial commitments. But there are many alternatives through which they can stop foreclosures other than bankruptcy. One of such options is short sale. Short sale means the lender is ready to accept less than the actual amount that was owed as a loan. In order to convince the lender for short sale one must effectively write hardship letter.

But what actually the hardship letter is? The hardship letter is a means to convey you financial situation to the lender, to tell them the reason why you require modification and to convince them for modification. This hardship letter will become your basis for future negotiations. Usually this hardship letter comes into picture when you could not afford to make your monthly payments and fall behind the payments. In order to convey your problem to bank and to approve your application by the bank it is necessary for you to draft the hardship letter very effectively. In this article we will outline some of the guidelines which will be very useful while drafting hardship letter.

Write as early as possible: you must write this letter as soon as you feel you may fall behind the payment. The sooner you submit you will have more time before you fall behind the payment and favorable to you.

Keep it short: you must be able to write letter up to the point and concise. The longer the message it will divert the reader, there by lose interest

ry to make it personal: make sure to personalize your letter by including details of your family and you allowing the reader to identify with your situation.

Give enough information: letter must provide enough financial information that includes your monthly income, your monthly expenditure and your financial constraints. Make sure you furnish the documents that prove your income and expenditure and that documents must be genuine. Avoid lying when disclosing the information.

Clearly state the problem: let the bank know under what situation you are motivated to write this letter. Provide details of your situation.

Show your interest: the letter you write to bank must convey your eagerness to close this deal as soon as possible. It must be written in readable way. If your hand writing is not clear then better you type it.

Make it as request: write the letter as if you are requesting the bank to consider your application for loan modification. Clearly mention your efforts to increase income and decrease expenditure and hence save home. State in it about how long your financial crisis will last. And also mention about what sort of loan modification program you are looking and what monthly payments you can afford.