Can't afford your ARM Adjustment? Ask your lender for help. See sample letter.

Here is possibly a pro-active way to help prevent getting into foreclosure and also will help the HUGH ongoing Foreclosure problems in California's ~ San Joaquin, Stanislaus, Alameda Counties and the surrounding areas.  Having the #1 Foreclosure rate coming right out of Stockton and with Modesto following with the #2 spot, contact your lender before you get into foreclosure. 

It is the beginning of the year coming up and there is going to be a large number of ARM-adjusting and it will not be a pretty site.  Take the steps to help yourself.  What can you lose by asking?

If you find yourself in a situation where your ARM is adjusting to a higher payment that you know your budget cannot survive and you want to take action now to avoid getting yourself into default which can lead to foreclosure, try contacting your lender now! Or as in this sample letter, you have contacted the lender and they would not work out something that you can afford. 

I've prepared a sample letter that you can send to your lender.  In this example, the seller contacted the lender via phone and tried to work out a plan, they came up with a plan that will not work but they are not giving up and will try to come up with a plan that will work and hopefully will get the approval from the lender.

Modify the letter if you have not contacted the lender but you know that you will be in trouble when your payments adjust to an amount you cannot afford.

Call me if you need help in re-wording the letter to fit your situation.

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SAMPLE OF LETTER TO LENDER TO HELP AVOID FORECLOSURE

TO:       Mr. Lender, name, address FROM:  YOU RE:       Loan #

Dear Lender:

Due to the scheduled ARM adjustment in 2008, 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 problems.

When I purchase my home I was gainfully employed and have made my payments that I signed the loan for.  At the time I agreed to the loan, I believe the loan officer and was convinced that this was a good plan for me based on the promise that I would be able to refinance after the two years and that would lower my payments even more.  He reassured me that I would never have to pay the higher payments of the adjustment because I would be able to refinance.

Well, its now time for my ARM to adjust and it will be going up $1,000.  That $1,000 is way more than what I am paying now and I cannot afford that increase.  I have tried to take the necessary steps to avoid getting in a situation where it will lead me to late payments and then default and pre-foreclosure to foreclosure by contacting my lender. 

1. I have also tried to refinance and found out that I did qualify to refinance but also found out through an appraisal that my property is not worth what I owe on the property.  So that put me in a situation of what can I do? 
2. I contacted the lender and asked about a modification program and was quoted a even higher payment than the what the adjustment is going up to! So that was no help either. 
3. I was also advised to go my second lender and ask for assistance and see if they would take a short payoff so that I could go ahead and finance and they sent me a short sale package -- which is what I am trying to avoid and that is of losing my home.  So I am still needing some solid assistance so that I do not either lose my home or have to short sale it.

Up until now I have kept my mortgage payments current but I know that I cannot afford to pay the additional $1000 a month and will eventually fall behind and I want to keep my home. 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 will need a program that I can afford. 

Here is what I can do until the market recovers from this situation and my home's equity increase so that I can with my good credit qualify to refinance the existing loans that I have. I have prepared a budget, which I've enclosed for your review. Right now I can do the following payment arrangements:  Beginning with Jan 2008, I would like to make the same payment of ___________ and _________ towards the adjust (instead of the $1,000) for the _________________ months/years.   And once this market crash is better and the housing values climb, I'd be able to refinance and get a better payment.  This is how I can save my home. 

**** send this to the 1st.  and send another one to the 2nd leaving out the history of the 1st or revising it so that it is just FYI to the second. 

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 default and possible foreclosure.

Important information to let the lender know:

1. You want to avoid foreclosure
2. You have a hardship which is the ARM adjustment Jan 2008 and they know that is has caused thousands of borrowers a hardship.
3. You are asking for assistance
4. You have worked out a budget / payment plan
5. You have set a time depending on the market restoration
6. Your availability
7. Be truthful in your letter

For free market evaluation of your home visit http://www.motheranddaughterrealty.com/

Check out my Mother and Daughter Blog for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team and we also focus in Short Sales and the Pre-Foreclosure process.  Our consultations are free.  Our aggressive marketing plan includes progressive on-line listing advertising.  If you are thinking of selling or buying a home in Northern California: Central Valley (San Joaquin/Stanislaus Counties), East Bay (Alameda, Contra Costa Counties) and would like a free Home Seller's or Home Buyer's Handbook, please call us at Perfect Financial Solutions 866-750-8282 or direct 510-284-7721 or email at brooksrm2042@aol.com