The way to avoid foreclosure is to modify your existing loan, especially if refinancing is not an option. A large amount of loan modification requests are denied due to a poorly written loan modification hardship letter. The main step in solving your financial problems is to write a letter that tells the lender all the information that they need to know, written in a way that gets their attention.
Your loan modification hardship letter should include your financial situation and your reason for requesting a loan modification. Keep in mind that it is important to show them that you have every intention of repaying your loan and keeping your home. Explain to your lender that this is the help you require in order to continue paying your loan. Make it clear in your writing that paying your mortgage is your first and top priority over all other financial commitments.
Your lender does need to understand your situation but do not go on and on about your problems. Be sincere in your letter but get to the point and don't make it sound as if you are complaining. Honesty is very important. Once again, make sure you let your lender knows how important it is to you to keep your home. Remember, you are writing the loan modification hardship letter so as not to default on your mortgage again. Emphasize this point.
Lenders are so busy with other people in the same boat as you due to the current economic situation that you do not want your letter to be overlooked. You want to make sure that your lender gives you the attention you need and that you do not get put on the back burner because of all the letters that they have received. Make yours stand out. Take a positive approach in your letter and state your plan to get your finances back in order. Your letter should be shorter and to the point but no more than a few pages. Let them know that you are a responsible person that is going through a rough time and that the loan modification will give you the second chance needed to get back on track.
In order to get the loan modification that you so desperately need, there are two things that you should do before getting in touch with your lender. To help you state your particular case, get in touch with a reputable financial advisor that has helped homeowners like you. There are also online templates that will help you with writing an effective hardship letter. The sample letters will help you to organize your letter to get the loan modification that you are asking for.