Due to the increasing prices of goods and gasoline, losing a house will be a nightmare. There may be many people who are not able to make their mortgage payments and are not able to sleep at nights because of the fear of losing their home. There are ways to stop these kinds of things from happening without declaring bankruptcy. There is an option to apply for a short sale wherein the lender is willing to accept a lesser amount than the total amount owed to the loan. You just have to write a hardship letter to the mortgage lender if you are expecting to fall behind in your monthly mortgage payments.
When a person is not able to meet his financial obligations with the mortgage company, s/he needs to submit a hardship letter to the mortgage company. By writing this letter, you can actually insist the lender to give you another chance by working out some kind of payment arrangements. When you write the letter, be realistic and honest and you must present the facts clearly. By going through your hardship letter, the lender should have a clear understanding of why you are not able to make the payments on a timely manner and why creditors or mortgage firms should accept the proposal of the homeowner of a short sale.
You should always present legitimate reasons in your hardship letter for falling behind. The lender knows that you are experiencing some financial woes and that reason should not be sufficient enough. There should be other reasons mentioned in the letter, like a job loss, death in the family and a prolonged personal illness. Keep the facts straight so that the lender gives a considerable thought in your situation and is willing to work out payment arrangements or loan modifications with you.
No one other than the homeowner who is expecting to fall behind in his monthly payments is supposed to write the letter to the lender. He should ensure that all the information mentioned in the letter is accurate. There can be serious consequences if the lender comes to know that the information provided in the letter is inaccurate or the homeowner is lying to avoid the mortgage payments.
The short sale package submitted to the banks normally states the amount the banks will lose if they foreclose the property and the amount they will gain by pushing through with the short sale.
A sample introduction would be: “I am writing this letter to inform you of my unfortunate circumstances and the reasons that have caused us to be delinquent on our mortgage. We have done our best to make both ends meet but unfortunately, we have fallen short and my husband lost his job. We now would like you to consider working with us to modify our loan. Our foremost priority is to keep our home and we hope you will give us the opportunity to do that.”