Hardship letter to stop foreclosure

Writing skills are a lot more important that we think. Sometimes in life we get in certain situations where a good piece of writing can help us get out of a lot of trouble.

In the current economic downtrend, many people have lost their jobs and it is not always easy to find a new one that pays equally well. If you have a financial commitment such as a mortgage, it may not be possible to continue paying it.

A simple letter to your financial institution can get you easier terms of credit or at least buy you more time from a potential foreclosure. It is not the hardest kind of letter to write and with an appeal to the good nature of people, results can be achieved.

Start the letter with salutations and let the respondent know the reason of your letter. Use kind language to explain your situation and give a brief account of the reasons behind it.

In the next paragraph, make the request for stopping a potential foreclosure. Once again use kind words and appeal to the good nature of the financial institution that you are writing to. Express confidence in the company.

Conclude the letter with a thank you and once again make a gentle request to the company to consider the case with kindness.

Instructions

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    Sample Hardship Letter to Stop Foreclosure:


    Gary Shaw
    477 Nile Valley St
    Piscataway, New Jersey 34343
    Capital10 Bank
    BS13789PNJ

    To Whom It May Concern:

    The purpose of this letter is to let you know of my current financial condition. Due to my current unemployment, I have been unable to settle my mortgage payment for the last two months. I have been trying my best to arrange the payment but have been unable to do so.

    Our intent is to pay the loan once we are in the financial condition to do so and keep our home. I request you that the terms of our loan be modified and eased so that we can make smaller payments until we are able to make a full financial commitment once again.

    We have nearly exhausted all our savings and are unable to continue the full payment. With some job possibilities soon, we kindly request that the terms be modified by your organisation to help us and does not consider foreclosure at this point in time. We expect to be able to make the full monthly payments in three months time.

    We sincerely hope to rebound from the current situation and pay are liabilities towards your organisation.

    Sincerely and Respectfully,

    Jane Doe
    10-1-13
    John Doe
    10-1-13

  • 2

    Template of Hardship Letter to Stop Foreclosure:


    Name: [Your Name]
    Address: [Your Address]
    Lender Name: [Your Lender]
    Loan #: [your Loan #]

    To Whom It May Concern:

    The reason for my letter is to let you know that I have been unable to pay my monthly installment for the condominium for last three months. Due to being ill, I have been unable to join work and have been paying my medical bills out of my own pocket as the insurance company does not cover the expenses for my current condition.

    The doctors have explained to me that I should be able to rejoin work in two months time and should be able to perform my work without any issues. For now, my income is very limited and I will be unable to make more than 25% of my monthly payment.

    I request that under these circumstances, [financial institution’s name] allows me a period of relaxation for three months and takes back its decision to foreclose the condominium in case of non-payment in the coming month.

    Looking forward to receiving a positive reply from your part.

    Sincerely and Respectfully,

    [Borrower’s Signature]
    [Date]
    [Co-Borrower’s Signature]
    [Date]

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