Ways to reach out to the lender and possibly help yourself.......

The best advice anyone that anyone that is in trouble with their mortgage can get is to contact your lender.  Do your homework first and then give them a call and let them know that you are having problems with payment and give them the reasons why. 

>> Below is a sample letter to send to your lender  ~~~ please note: This works best if you do it BEFORE you have been served a Notice of Default.  However, it does not stop you from contacting them even AFTER you have been served.

There are some plans out there to help those that qualify by matching up to the criteria set, plus most lenders have forbearance, re-instatement, mortgage workout plans that will help you.  Don't give up and think that there is no help for you.  Do your homework.

If you feel you need to do a short sale because it is probably the best option instead of foreclosure or deed in lieu foreclosure on your credit, and you decide to hire an agent, have the agent contact your lender for you and see if the lender has other owner assistance program available to you.  If not, short sale is the next best step.

Although, there are no guarantee that the lenders will accept your short sale request, but you won't know that unless you try.

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SAMPLE OF LETTER TO LENDER TO HELP AVOID FORECLOSURE

TO:       Mr. Lender, name, address

FROM:  YOU

RE:       Loan #

Dear Lender:

I am finding myself heading for trouble with my mortgage and I am writing to ask for your assistance.  I am asking for assistance before I get into default and pre-foreclosure problem.

When I purchase my home I was gainfully employed and had promise of getting a raise in a few months.  Since that time my company has done some downsizing and my hours were affected and cut down - thus my income is less.  So instead of getting a rise, my income has decreased.  My manager said the company is looking at increasing my hours in a few months and I can provide that letter to you.  I am enclosing a copy of my pay stubs since the time of the decrease and one with the full payment for your verification.

Since that time I have been unable to keep my mortgage payments current.  Whereas I have not yet fallen more than 60 days late, I am finding it harder and harder to hang in with the payments.

I need your help in order to keep my home from foreclosure.  I would like to be considered for one of your owner assist programs so that I can avoid foreclosure and can keep my home.  I have taken some steps to get back in a better situation with my income by seeking a second job. 

Here is what I can do until I get a second job and more income. I have prepared a budget, which I've enclosed for your review. Right now I can do the following payment arrangements:  Beginning with June, I would like to make a full payment and 1/4 of the missed payments until such time as I am completely current. This should take me about 8 months to get back on track. I do not anticipate having any difficulty regaining my normal hours of work and income by May. I have been with this company for 11 years and anticipate retiring with them in the future. You can see that with your assistance, I will be able to make it financially until I can get another job or my company increase my income and hours.

My telephone number is ___________ and the best time of the day to reach me is between ______________ daily. If there is any additional information that I might provide, please let me know immediately.

Thank you in advance for your consideration and assistance in helping me save my home from foreclosure.

Important information to let the lender know:

1. You want to avoid foreclosure
2. You had a hardship that caused you to get behind - you provide verification of that hardship with dates, pay stubs, letters and other information.
3. You are asking for assistance
4. You have worked out a budget
5. You have looked for other employment to bring in more money
6. You have worked out a payment plan
7. Your availability