Copy of a Hardship Letter - Stop Foreclosure And Save Your Home

One of the first things your lender will ask you for when you request that they modify your mortgage loan, is a copy of a hardship letter written by you to explain why you are not able to pay your mortgage any longer.

I am amazed at the number of people that resist putting the quality into this letter that is necessary to illustrate clearly to their mortgage company what has caused them to get in the financial situation they are in.

Keep in mind that your lender does not want to foreclose on you.  The worst thing they could have happen is to have to take possession of your house.  They want to work with you and help you stop the foreclosure and save your home.  But they can't just let you have it without trying to work out a mutually beneficial result.

When they ask you to give them a letter of explanation, it's true that they want to know why you can't pay your bills.  But also, they want to know that you really want to keep your home and avoid foreclosure.  They want to see a willingness on your part to work with them.  Your attitude and willingness to cooperate during this process demonstrates to them that you are a responsible person.

This cooperation or lack of it, helps them to evaluate how much of a risk you will be down the road.  Your goal in preparing a copy of a hardship letter for them, is to show them that you will do whatever they ask of you.  You will want to let them know that you realize the huge favor you are asking of them.  You are asking them to forgive thousands of dollars that you originally asked them for.  Not only did you ask them for it, you promised them that you would pay it back.

Try to appreciate the fact that they are willing to work with you.  Try to show gratitude that they are willing to consider forgiving you thousands of dollars that you owe them.  Stay humble as you communicate with them as they make an effort to help you stop the foreclosure and save your home.