Many homeowners have ended in foreclosures because of the recent economic slump and high rate of unemployment. These homeowners weren’t able to pay their mortgages causing lenders to take legal action against them. An effective way to avoid foreclosures without a legal battle is by making a hardship letter. A hardship letter can be a great decision in battling foreclosures and here are some tips on how to write a hardship letter.
1. You can choose to hire a consultant to write the hardship letter in your behalf or write it yourself. The important thing is make sure all relevant information regarding your financial status are attached for the benefit of your lenders. Also include your personal details, loan agreement details, reasons for your hardship and its proof like pay cuts and retrenchment to help your lenders fully understand your situation.
2. It is a good idea if you could recommend solutions to your creditors to solve your problem instead of proceeding with a foreclosure. You can also negotiate a better mortgage deal with the lenders to make sure you can deal with the mortgage payments better.
3. After mailing the letter, double check to make sure the lenders received your letter. Also volunteer to meet them face to face to settle the problem.