Writing a Mortgage Loan Forbearance

What a mortgage lender wants

The fear of loss is always greater than the desire for gain. People will not give you a mortgage, even with a high interest rate,  if they don't think they will get their money back.

Remember to always answer the four "C"s, Collateral, Commitment, Credit and Capacity. 

Sample Letter. Simply copy, paste and print. Attach all necessary documents and use Registered mail with return receipt.  en Espanol

____________________________________________________________________________________________________________________

Date:

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.


Most sincerely,
YOU


____________________________________________________________________________________________________________________



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