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(Explain income and expenses or attach a budget) I have enclosed copies of (budget, bank statements, paystubs, W-2, etc.) Please consider a workout agreement (or repayment plan, loan modification, etc.) for our loan. We appreciate your willingness to work with us to prevent foreclosure of our home.
A financial hardship letter is a document in which you can detail your financial situation for your lender in hopes of getting a payment extension or reduction. This letter should explain your current financial situation and why you're unable to make payments.
A hardship letter is a letter written by homeowners to their lenders to make known their financial situations and why they can't meet up with their regular payment. Also, hardship letters can be used to request loan modification and other forms of loan workouts.
Put your name, address, phone number, loan number, and date on the top of the letter. List the name and address of your lender. information about any money you have saved for a workout agreement. Tell the lender you are working with a foreclosure counselor and include their name and agency.
6 ways to stop foreclosure Mortgage repayment plan. ... Loan modification. ... Deed-in-lieu of foreclosure. ... Short sale. ... Short refinance. ... Refinance with a hard money loan.
How to stop foreclosure in California Bringing your loan current. ... Requesting a loan modification. ... Making a forbearance agreement. ... Refinancing. ... Making a short sale. ... Obtaining a reverse mortgage. ... Declaring bankruptcy. ... Filing a lawsuit to stop the foreclosure process.
You can postpone the auction with the help of an attorney, cancel the sale by initiating a deed in lieu of foreclosure or arranging a short sale, or sell the home to the bank. If the house is returned to the lender, you have the option of buying the house back.
You can potentially file for bankruptcy or file a lawsuit against the foreclosing party (the "bank") to possibly stop the foreclosure entirely or at least delay it. If you have a bit more time on your hands, you can apply for a loan modification or another workout option.