Open Question: The foreclosure process, what do I need to do?

[Administrator]

After several rate adjustments and no help from our mortgage company we have prepared ourselves mentally to let our home go. I'm still young(24), I'm aware my credit would be shot. I can't refinance since the loan(145k) is over the value (136k), so this isn't an option I have. My question is, in Oregon can the mortgage company sue me for whats left over of the loan after the sale? Or will this debt be forgiven. Thanks!

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[elizabethparker]

For those people facing the loss of their home the foreclosure hardship letter is a very important part of find a solution to their hardship. Two of the main options available are the loan modification and short sale programs. Loan modifications are offered to homeowners who want to work with the lender to prevent losing their home due to foreclosure.

The foreclosure hardship letter does not go to a collections department. It will read by a Loss Mitigator, a person who works for the lender. This person will read several foreclosure hardship letters on a daily basis spending hours picking out the facts. It for this reason that you have to be to the point and have all your answers up front. This will save the loss mitigator time for reading and your answer will come sooner.

There is no reason why you can’t write your foreclosure hardship letter but you should have very good handwriting. Remember it’s all about getting the points across so to be on the safe side either type it out or have someone type it for you. The main point is the loss mitigator has to be able to read and get the facts from this letter.

Below are some highlights for a foreclosure hardship letter:

1. Use a business format.
2. Start with your name, address, city, state, zip and phone number at the top.
3. Two spaces blank.
4. Name of the loss mitigator, lending institution and its address (Find this out by phoning).
5. Two spaces blank
6. Date
7. One space blank
8. Loan number
9. The main part of hardship letter should be about four to six paragraphs with a space between each one.
10. Thank the person for his or her time
11. Your signature
12. Print your name

The best way to get results is to get a sample foreclosure hardship letter and work from it. Nothing succeeds like success so follow the successful people and get your today.

Here are some main points for a hardship letter are:

1. Subject Line Request - Right off the bat let the loss mitigator know what you are requesting.
2. Brevity – Don’t let your financial hardship letter go on for page after page. Keep it as short as possible.
3. Personal - Let the loss mitigator get to know you and your circumstances.
4. Clarity – Get your points across in the clearest possible way and then provide a summary.
5. Information – Make sure you leave nothing out of your financial hardship letter. Attach important information such as bank statements, cash flow documents, income tax statements, letters of reference, etc.
6. Be Appreciative – The person reading this financial hardship letter did not get you into this mess but he or she is the one that can help you out of it. So be thankful and humble in your tone.

The hardship letter is not the only tool in your chest for a financial reprieve but it is by far one of the most important. So make it your prime instrument when dealing with the bank and get it in soon.