How to Stop Foreclosure Templates
If a financial hardship has caused you to fall behind in your mortgage payments, you're far from alone. RealtyTrac.com, an online real estate data firm, reported that a record number of homeowners received foreclosure filings in 2009. Use a template to stop your home from falling into foreclosure. The template involves composing a hardship letter, proving to your lender that you are in financial distress and working out a loan modification that results in a lower monthly payment.
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Things You'll Need
- Copy of current mortgage loan statement
- Copies of credit card bills and other loan statements
- Copies of last two months of paychecks
- Copy of most recent federal income tax return
- Copies of checking and savings account statements
Instructions
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Compile the paperwork you'll use to convince a lender or bank that your gross monthly income has fallen substantially thanks to a financial setback. The basic template for stopping a foreclosure starts with homeowners building the evidence that they need help from their lenders to avoid losing their homes to foreclosure.
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Make copies of this financial paperwork. This includes your most recent federal income tax return and last two months worth of paychecks. These documents will verify your gross monthly income. Make copies of your credit card bills and other loan statements: These will verify your monthly debt obligations. Also make copies of your savings and checking account statements to prove to your lender that you do not have a significant amount of money stashed in your accounts.
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Contact your lender at the phone number included on your mortgage loan statement. Your statement might also include a general email address, but it's best to take about stopping a possible foreclosure over the phone.
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Tell your lender that you have recently suffered a financial hardship. Explain that it has made it impossible to pay your monthly mortgage bills and that you're worried about losing your home to foreclosure. Explain that you'd like financial relief in the form of a mortgage-loan modification.
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Write a financial hardship letter that explains in detail the hardship you are suffering. This key part of the basic template for stopping foreclosure requires you to list clearly whether it's a job loss, drop in annual income or medical condition that has resulted in your inability to pay your mortgage payments each month.
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Send your financial hardship letter and the paperwork that you compiled to your lender or bank. An official there will study the documents to determine whether you've proved a great enough financial hardship to warrant a loan modification. If your lender rules in your favor, it can elect to reduce the principal amount of your remaining mortgage, reduce the interest rate or lengthen the terms of your loan, all of which will lower your monthly mortgage payment to a more affordable level.
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Tips & Warnings
Don't hire an outside company to help you stop a foreclosure. You can contact your lender and initiate the basic template for stopping foreclosure on your own without having to spend extra dollars to hire an outside firm.
