Answers
I am looking for an extension letter to prevent foreclosure?
I am in the proccess of having my home foreclosed. I have been in contact with the lender but need more time to come up with the funds to make things current. In Penssylvania you are allowed an extension on foreclosure, but I do not know what this letter is supposed to say.
Best Answer:
A letter of extension is something that is put together by the bank - not by the homeowner. What you might be thinking of is a Hardship Letter - this is a letter drafted by the homeowner to demonstrate their financial hardship, and is usually accompanied by a financial statement. These letters are normally used for Short Sales (when a bank forgives a certain amount of debt to allow the sale of the house to go through). There are a lot of options besides foreclosure. To be brief I will list a bunch, instead of trying to explain one or two: 1. Rent out a room (or the whole house) and pay out whatever you owe at the end of the month. 2. Negotiate a forbearance. It is free to you, and all it requires is that you contact your lender and ask for a repayment plan or even absolution of some of the amount past due. Also there are non-profit organizations that will help you negotiate a forbearance such as the Home Owner Preservation Foundation (HOPF) www.995hope.org. 3. Refinance for better set rates, and/or a longer loan (40years). 4. Sell via non-traditional means: lease option, wrap-around mortgage, rent to own, five day sale, auction, etc. There are more ways to sell a house besides just using a Realtor. 5. Short sale selling for less than the amount owed on the mortgage. 6. Sell to an investor - especially someone who knows how to do a short sale. Investors are easy to find - just go through your local classified ads and find the ads that read "I buy homes". 7. Deed in Lieu - Volunteer to give your loan to your bank in lieu of them foreclosing - saves them thousands, and saves you a foreclosure. 8. Declare Bankruptcy - 2nd least favorable, you will get rid of your debt (or be given a tenable repayment plan), and it will stop the foreclosure process, but it won’t erase the mortgage (and as of right now, won’t restructure your mortgage either) and you could have a credit hit almost as bad as foreclosure for 10 years. 9. Do nothing - the banks will take care of everything else! (AKA - foreclosure the worst credit hit you can have, and seven years before you can petition to have it removed).
Answers:
Call your lender again and ask to speak to the loss mitagation dept. They are the only ones that can work with you on your loan. The other depts automatically put you into foreclosure and that is why people think they are getting the run around. The letter is not done by you only the lender.