Thursday, December 31, 2009

Information Is Key to Avoid Foreclosure

One of the greatest threats to Americans and their way of life in today’s economic climate is the threat of foreclosure in Mesa, Arizona. With millions of Americans losing their jobs and the economic recovery not in sight, people every where are working hard to avoid foreclosure. The chance of losing your home in today’s economic climate is more real than it has ever been. The following is a list of things to help you endure the challenges of the economic times for those that are hoping to avoid foreclosure.

First and foremost, information is key. Get yourself informed as to the process, problems and solutions to the situation you are in. Also, inform the people in Mesa, AZ that need to know about your financial hardship, namely the mortgage institution. I would first suggest that you call your mortgage banker and inform them that you are having trouble paying the mortgage and would like to avoid foreclosure. This may be the optimal time to ask your lender for a loan modification. These loan modifications are often great tools in helping people avoid foreclosure. Many lenders may request that certain formalities are covered if you are truly trying to avoid foreclosure. Things like pay stubs, bank statements, tax returns and a hardship letter may need to be produced as evindence in your case for loan modification to avoid foreclosure. It is crucial that you produce these items in a timely manner to avoid any other problems.

Writing the hardship letter that will eventually help you avoid foreclosure does not have to be complex. Be sure to include critical details like name, address and loan details (account number, payment terms, etc.) Information is KEY! Explain that it is in your best interest and the banks best interest to avoid foreclosure. Be sure that the lending institution has a phone number that you can be easily reached at. They will undoubtedly want to speak with you regarding your hardship letter. Tell them the reason why you are unable to make payments at the previously agreed upon terms, reminding them that this reason is why you are trying to work with them to avoid foreclosure. Be specific with the numbers so that they can understand what the best options are for you and for them to avoid foreclosure. If you have recently become unemployed, find documents to support that if possible. If there are other things that have caused you uninvited financial strain, point them out to let the bank know that you are trying to avoid foreclosure.

The most important step in this letter is letting the bank know that a loan reduction or change in the terms of your loan will help you avoid foreclosure. If your relationship with the lender has been good in the past, it will certainly not hurt to remind them that you have been a good customer and you would like to remain a good customer.

Keep in mind that you are fighting to avoid foreclosure. This letter may very well determine whether or not you get to keep your home.

And lastly, don’t make the letter your final step. Keep your eye on the ball if you truly want to avoid foreclosure. Call the bank regularly to see what the status of your situation is.

 

Get informed as to what you need to do. Inform the bank as to what the problem is. Stay informed as to what is currently going on. Information is KEY!

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