Welcome to Pre Foreclosure Guide
Pre Foreclosure Lead Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Getting Started : Example of Pre Foreclosure Hardship Letter
from:Often when homeowners fall behind on their monthly or bi-monthly mortgage payments they tend to want to avoid communicating with the lender. In reality, communication is key and using the example of pre foreclosure hardship letter below may be just the tool to help your lender understand your current financial situation and what you need to be able to work with the lender. The example of pre foreclosure hardship letter provided below is just a template, you will need to add the specific details to help the lender understand your perspective on the situations that have lend to this point.
Typically when using the example of pre foreclosure hardship letter given below you may have additional issues that have led to the financial problem besides the one provided in the example. These may include:
• Death of a spouse or immediate family member
• Health problems and medical expenses
• High interest rates
• Personal tragedy other than the ones listed above
Example of Pre Foreclosure Hardship Letter
Your name and address
Today's Date
RE: Loan number
Dear XYZ Lender,
My name is John Smith and I have been living in the house I purchased on 12 Cotton Street, Anytown, USA for approximately 7 years. I purchased this house with your assistance on May 17, XXXX. Until March of this year I have been able to make all scheduled mortgage payments and I would like to explain why I have recently been unable to make the payments, despite my best efforts.
In March the company that I worked for went out of business, despite assurances earlier in the year that they would not be closing their doors. Rather abruptly in February we were given notice that as of March 1st the company would be no longer able to pay salaries. I immediately began looking for work in my field of expertise, however due to the specialized nature of my training it was very difficult to find employment at the same pay rate. Currently I am working two part time jobs, however my income is less than half of what it was when I was working full time. I have recently applied to two other companies in neighboring areas and am confident that I will be hired by one of the two. In addition my wife has returned to work on a part time basis, which has helped out with the household bills.
We are working with a credit counseling agency. Please find attached a budget sheet showing our income and household expenses, plus a proposed repayment plan for correcting our default payments on the mortgage. (Attach a detailed proposal). Our goal is to repay all payments skipped and make future payments on schedule.
I would be willing to discuss any options with you as we are sincere in wanting to correct this issue and continue to live in our home. Thank you for your consideration.
Sincerely,
John and Mary Smith
Each example of pre foreclosure hardship letter is slightly different, but they key elements should include a history of your good payment record, the reasons the payments have been missed, as well as what you are doing to correct the situation.
Pre Foreclosure Lead News
Fewer new mortgage problems in Maryland, more older ones
Good news, bad news: New mortgage-delinquency problems are back to normal levels in Maryland , but the older cases -- borrowers seriously behind on their loans -- aren't receding.
Read more...Rahal, Andretti happy to talk up rivalry pre-Indy
Marco Andretti fist-bumped Graham Rahal on his way out of an Indianapolis 500 promotional event, a much friendlier encounter than their bump on the track at Long Beach last month.
Read more...LPS' Mortgage Monitor Report: Foreclosure Sales Lowest Since December 2010; Foreclosure Inventory Remains Near ...
JACKSONVILLE, Fla., May 2, 2012 /PRNewswire/ -- The March Mortgage Monitor report released by Lender Processing Services, Inc. (LPS) shows that while March foreclosure starts increased a modest 8.1 percent ...
Read more...Foreclosures reach lowest level since 2007
Foreclosures are falling nationally, and "short sales" could help speed the housing recovery
Read more...Ally Financial's mortgage unit nears bankruptcy: sources
NEW YORK (Reuters) - Ally Financial Inc's Residential Capital unit is nearing a bankruptcy filing, sources familiar with the situation said on Sunday, in a move that could help the taxpayer-owned auto lender to shed its troubled mortgage business but also spur drawn-out legal fights. The board of ResCap is scheduled to meet later on Sunday and a pre-arranged bankruptcy filing, where Ally has the ...
Read more...