There are so many people who are on the verge of loosing their home. These people are exactly facing a mortgage that seems to be hanging in between their home and them. Mortgage like conditions can offer you real challenge. Most of the time people have lost their home due to such conditions. In order to get rid of such issue you can take an effective approach. Now you can get back to the mortgage manager with one of the most effective technique. It’s known as the sample hardship letter. It’s the letter that is always official to send for the mortgage manger and can offer you respite from such unwanted condition related to your home.

These days, it’s the demand for sample hardship letter that has managed to make things better for such people. Now these people can simply send a hardship letter to the mortgage manager and get an extension of time or a discount on their loan amount which they are supposed to pay back to the loan agency. Now even you can find more help from the internet. It’s the internet from where you can download direct format of the sample hardship letter and can make things better for your account. In case, you are searching for the sample hardship letter that you have come to right place. Below there is a sample hardship letter, which are very easily expanded on. However, prior to we get to this you are wondering, “What is the hardship letter?” In case, you have fallen behind on the mortgage payments & fear that you are facing foreclosure, and your first step is immediately contacting the mortgage company as well as lender. Undoubtedly they can instruct you write the hardship letter stop foreclosure, at times called hardship letter for the short sale (in case, short sale is goal). Hardship letter is the letter written to the lender detailing reasons that you will not continue making the mortgage payments.

It sounds very simple, however will not get mislead in thinking it is not very important and fact is hardship letter is a most important letter that you can ever need to write. Actually, it is an only document, which will persuade the lender in stopping foreclosure process. I am writing the letter to explain unfortunate set of the circumstances, which has caused us become delinquent on mortgage.

Sample Hardship Letter: In this lease back scam, more common now than ever, distressed homeowners are told that a person or company will buy the home from the distressed homeowner and lease the property back at an affordable payment. More often than not, these scammers increase the rents making them unaffordable. Moreover, the “paperwork” the homeowners sign frequently transfers title of the property to the new owner but keeps the mortgage in the name of the previous owner. So, the distressed homeowner loses their property rights but maintains the burden of the mortgage on their credit and often suffers tremendously.

Suffering the financial hardships of foreclosure is tough. And when we think of scams we tend to focus on the loss of property rights and the loss of equity or cash that con artists take away from their victims. The Seattle Times story about the Beck family of Washington shows just how much damage homeowner scams can have on American families. These scams literally split families apart.

From the Seattle Times:

In 2005, the Beck family was split in two, separated by thousands of miles. With half of his family in Florida, Reginald Beck didn’t see his children for six months.
A foreclosure scam ripped the family apart and left them without a home, forcing them to live with friends and relatives to stay afloat.
After Beck lost his longtime job at a phone company, he and his wife, Rosa, couldn’t make their mortgage payments, and their Puyallup home went into foreclosure.
The Becks received countless offers from people wanting to buy their house. The family grabbed onto the only offer that would allow them to stay in their home. The buyer promised to save the home from foreclosure and to allow the family to lease it until they could buy it back.
But somewhere in the transaction, the Becks unknowingly signed over their home, leaving them responsible for a mortgage but no longer owning the house.
And when they couldn’t afford the lease payments, they were evicted from the home they no longer owned.
The Becks are one of a number of families who have been hurt by foreclosure-rescue scams. Attacking homeowners in their most desperate times, scammers promise to the save homes but instead take the house and leave the original owners little chance of getting back their home.
Washington has seen a dramatic increase in the number of scams in the past five years, and state officials have taken steps to protect homeowners from foreclosure-rescue scams.

How a scam works

Foreclosure information is a matter of public record, so it’s available to anyone who wants to see it. Scammers use it to lure in property owners. They call, send notices or knock on doors. They approach distressed homeowners in a friendly way, saying they want to help save their homes, Huey said.
In a typical scam, homeowners are persuaded to transfer ownership of their home to the scammer, who tells them they can rent the home and continue to live there until they can afford to buy it back.
But the rent payments are often unaffordable, and homeowners find they are unable to buy the home back, Huey said.
Sometimes homeowners don’t realize they’ve signed over their home but remain responsible for the mortgage.
That’s what happened to the Becks.

Source: http://seattletimes.nwsource.com/html/realestate/2008190611_foreclosurescams21.html

Hardship Letter: Perhaps the best thing consumers can do for themselves is to get educated about the various scams that are being perpetrated on homeowners in distress. Unfortunately, this can take a great deal of time. Whenever I come across excellent articles that summarize the various scams succinctly I consider it a blessing. Anything that can quickly get to the heart of a matter and save a homeowner a great deal of time is a very valuable resource. Forbes magazine recently published and article on the various scams circulating today that take advantage of homeowners.

Equity Skimming

Equity Stripping

Phony Counseling Agencies

Lender Scams/Phony Loan Transaction

Loan Flipping

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Sample Hardship Letter

sample hardship letter: In this type of scam, your lender may offer to refinance your loan and tempt you with some extra cash. If you fall for the trap and consent to get your loan refinanced, as soon as you make some payments, the lender will persuade you to refinance your loan again and offer you more cash for vacations or home renovations. You accept this attractive offer, take the cash and get your previous loan refinanced. In reality, this extra cash may be much less than the additional fees and costs your lender is charging for refinancing your loan. In this scam, your lender may not even make any attempt to explain to you that the increase in the loans imply added fees and points for refinancing, higher interest rates or even prepayment penalties each time you take a loan. In short, repetitive refinancing could put you deep in debt and may ultimately lead to the foreclosure of your home. So be sure to read the paperwork carefully and don’t be afraid to have a professional look over it as well, it could save you thousands.

Hardship Letter:When you are on the brink of foreclosure, a lender may claim to rescue you from this situation by refinancing your loan with lower mortgage payments. In the beginning, the mortgage payments are considerably low as you are paying the interest only. At the end of the term, you suddenly realize that the total amount you borrowed is still due in a lump sum balloon payment. If you can’t make the entire balloon payment or get your loan refinanced, you may lose your home to that lender.

In a phony loan transaction, a lender introduces you to a refinancing loan document that claims to bring your neglected loan current. However, the document may transfer the title of your home to the company’s name for a very small part of its value. Many times, the loan’s terms will include prepayment penalties, balloon or interest-only payments, huge fees and immediate rate adjustments. Therefore, it is prudent to get all legal documents assessed by your attorney before signing them. (For related reading, check out “Mortgages: Fixed-Rate Versus Adjustable Rate” and “ARMed And Dangerous”.) Sample Hardship Letter

Sample Hardship Letter: You may find a large number of phony counseling agencies that offer their services–for an outrageous fee. But all they do is make some inexpensive phone calls and complete paperwork. These agencies may negotiate a repayment plan with your lender or organize a pre-foreclosure house sale on your behalf. However, the jobs these companies perform can all be easily performed by the homeowner without the additional cost. The main aim of these agencies is to mislead and stop you from getting real help. So take care that you confirm that an agency is genuine before using its services, and never pay up front for foreclosure services.

HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home. go to http://www.hud.gov/offices/hsg/sfh/hcc/fc/ to use their search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer. Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. Hardship Letter.

Sample Hardship Letter: In an equity-stripping scam, an unscrupulous mortgage lender will come to you with an offer to get you a loan; this person is usually aware of your poor financial condition. The lender pushes you to exaggerate your income on the application form to get the loan approved. You accept the loan because you need the money, even though you aren’t entirely sure that you can afford the monthly payments. The moment you default on your mortgage payments, the lender will rush in to foreclose your property and strip you of your home’s hard-earned equity. equity stripping began to spring up in the early 2000s and is conducted by investors or small companies that take properties from foreclosed homeowners in exchange for allowing the homeowner to stay in the property as a tenant. Although “foreclosure reconveyance” schemes can be beneficial and ethically conducted in some circumstances, many times the practice relies on fraud and egregious or unmeetable terms. Hardship Letter.

Back to Foreclosure Scams

Hardship Letter: This is a type of fraud that swindles homeowners out of their equity, usually when they are in default on their mortgages or their real estate taxes. A person who calls himself a buyer stops at your door and convinces you to sell your property to him (usually for less than market value) and promises to pay off your mortgage. The buyer is likely to advise you to transfer the deed of the property to him, move out of the house and stop interacting with your mortgage lender. The buyer will then rent out your property to a third party and start collecting monthly rental payments. Unfortunately, the buyer will make no effort to pay the mortgage payments, thereby allowing the lender to foreclose on your property. The skimming aspect comes into effect if you have a reasonable amount of equity in your property; the scammer will flip the property to pay off the debt and then make a profit by keeping the equity. Remember: Signing a deed over to a third party does not relieve you from your mortgage obligations.

Other times it involves people who call themselves investors who see a huge pile of equity in a property that is headed toward foreclosure. They approach the owner and tell them that that by selling their residence to “the investor”, it would wipe the slate clean and “the investor” would take over all of the homeowners’ property-related debts and obligations. The homeowner complies and loses all their equity in their property.

Back to Foreclosure Scams

Hardship Letters

Hardship Letters: This may be one of the more elaborate foreclosure rescue scams I have ever heard of. Instead of promising to modify a loan, negotiate with a bank or forestall a notice of trustee’s sale, these scam artists in Hawaii actually held seminars that cost consumers thousands and sold them fake bonds. The counselors claimed these bonds would actually pay off the mortgage on their homes. These bonds were supposedly valued at a million dollars but were purchased for pennies on the dollar. If it sounds too good to be true, most of the time, if not all of the time, it is.

From Fox News:
The FBI is investigating several companies that allegedly bilked Native Hawaiian homeowners out of more than $300,000 by offering bogus foreclosure rescue bonds.
The homeowners were charged between $2,500 and $10,000 to attend seminars or counseling sessions on avoiding foreclosure. They were told they would receive bonds worth $1 million that could be used to pay off the outstanding balance of the mortgage.

Officials said the bonds were bogus and no mortgages were paid off.

“These scams have cost homeowners and lending institutions hundreds of thousands of dollars and have led to foreclosure proceedings affecting many families in Hawaii,” said FBI Special Agent Brandon Simpson.

He said the FBI has confirmed several dozen victims and more may come forward. He said some of them may be able to avoid foreclosure but didn’t give specifics.

Several of the companies pushing the bogus bonds claimed to be affiliated with Native Hawaiian sovereignty movements. Sample Hardship Letters.

As part of the scheme, “mortgage counselors” told their clients to ignore letters from banks that threaten foreclosure because they were monitoring the situation and would respond on their behalf.

No arrests have been made, but the FBI said the culprits could face mail and wire fraud charges.
One local lending institution has been forced to foreclose on five loans after mortgage holders stopped sending payments.
The FBI has contacted the mortgage divisions of local banks about the scheme.

Source: http://www.foxnews.com/printer_friendly_wires/2008Nov17/0,4675,MortgageScam,00.html
Sample Hardship Letter

Hardship: Nearly 300,000 homes a month are going into the first stages of foreclosure. California is one of six states that have been contributing about 60% of the total number of foreclosures since late 2008. Of that number, Florida, Arizona and California are responsible for 44% of the total foreclosure rate nationwide.

California, there are six cities among the top 10 cities nationwide suffering the highest rates of foreclosure. In terms of what this means for foreclosures, it looks as if the state still has a ways to go in order to fully get a handle on stabilizing its hardship foreclosures and increasing revenues from home ownership.

The cities within California, the state has the number three and number four positions (Modesto and Sacramento) while also running the table from five through eight as well. There is no particular region hardest hit, and cities are located in both the southern and northern areas of the state. California is large and diverse, unfortunately because any other state would have been dealt a fatal blow from having so many cities on that list.

California, though, is refusing to quit and is hanging in there and working hard to begin pushing down California foreclosures in the best way it can. The federal government has been assisting by offering a number of different mortgage prevention programs, though a great many citizens in the state bought much more home at the peak of the real estate boom than they probably should have.

These people are now sitting on homes that may have declined by 50% or more in terms of their value. They owe more than a home is worth, in other words, and they quite often took on initially-low and attractive home loans that are now increasing in terms of their monthly payment as interest rates on them have been adjusted upwards. This is helping to exacerbate the rate of California foreclosures as well.

At present, 1 in every 409 homes in the country has begun to enter the first stages of the foreclosure process. In California, that rate is probably somewhat higher, meaning that it will be vital for leaders to stabilize real estate markets as best they can in order to ride out the continuing storm that the recession has caused, especially in California.

Hardship Letter!

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