By Jonathan Gillham

To a family or an individual, losing their home is the most traumatic thing that can ever happen to them. With the current downtrend in the economy and people losing their jobs like dominoes falling down not being able to make your monthly payments to lenders or banks becomes more difficult if you are laid off or your working hours have been reduced. The task of even feeding your family becomes a huge problem especially if you have kids who are babies or schooling.

When you fail to make payments on time to the lender for a loan mortgage, trying to short sale your home can sometimes be rejected by the lender due to the real estate market declining by the day. In fact there are times when you are unable to sell at all. With so many problems to deal with, you may at times not understand why the lending institution or bank refuses the short sale.

Your core problem lies with the hardship letter you produce. You need to produce a hardship letter that delves right deep into the core problem you are facing. Wording your hardship letter is extremely important. It could also be the main reason for rejection so making sure it is first priority should be your goal.

The lender may want to foreclose your home as it may be more profitable especially when there is mortgage insurance involved. Lenders always make sure that the documents that you sign at the time of taking a loan mortgage, has a clause that gives them the legal rights to foreclose your property in case of defaulted payment.

When you submit a proposal to the bank to do a short sale, you may have inadvertently submitted an incomplete one.

The offer you propose may be much lower than the current sale values making it difficult for the lender to recover the monies owed by you not to mention the interest.

Although you may think your proposal is complete a lender or bank may reject it due to numerous reasons. With short sale the banks tend to lose which is the reason they are meticulous. Most people who want their homes put on short sale try to sell in exchange for the outstanding loan mortgage. There are times when you are confident that it will work, the bank rejects your proposal to dispose of you home in this manner.

You should never give up and let your home be foreclosed. There are several methods that you can use which will help you retain your home and your peace of mind. It will also help make your family feel more secure.

Double check and make sure your proposal is one hundred percent complete. If in doubt ask someone who has gone through this same procedure and succeeded. There is no doubt with foreclosure being the ‘first word’ there are many out there who would do anything to save their homes, so make sure you keep yourself updated with the trends.

Next step is to make sure you follow up on your proposal.

Try getting opinions and prices from brokers. Make enquiries so you know you are on the correct track.

To prepare these critical documents you can use the Complete Loan Modification Kit which provides you with all the forms, document templates and an extensive how-to guide.

To learn more about the loan modification process please visit: http://www.foreclosuresmedic.com

This is the ninth installment in our foreclosure series. Be sure to check back for updates…

Filed under: Foreclosure

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