Often times, this document is the only thing that will persuade your lender to agree to a short sale or loan modification.
Because it is so important, learning how to write it properly is critical.
First, however, we must take a look at what it actually is.
In general terms a hardship letter to stop foreclosure, sometimes called a hardship letter for a short sale, is a document written to your lender describing why have not been able to pay your current mortgage.
It's a way for you to convince your lender to stop the foreclosure and either agree to a short sale or a modified loan payment.
The choice, of course, will depend on your individual circumstances.
For example: You've been recently divorced and neither you nor your former spouse can afford to pay the current mortgage alone.
You must sell the house.
A short sale is probably going to be your goal.
Another example: You bought a house in a town with a great school system for your children.
But, you or your spouse has recently been laid off.
Your mortgage is no longer affordable.
Being forced out of your home would be heart breaking.
A loan modification would probably be your goal.
As I stated earlier, the hardship letter to stop foreclosure is usually the only thing that will persuade your lender to agree to your request.
It may be the most important letter you will ever write.
I urge you to do your research when writing it.