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What should you include on a foreclosure letter template?

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A foreclosure letter template should have an area for the customer to present a clear picture of his situation. The customer needs to explain the circumstances that are beyond his control that have made him unable to make good on his mortgage commitment. Usually these hardships include loss of job, medical bills, natural disasters and military service.

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An area for detailed honest, personal information about the circumstances that justify the person asking for a loss mitigation is needed on a foreclosure letter template. A foreclosure letter is generally one-page, and has a direct statement outlining the purpose of the letter. An outline of events that let to the customer's inability to pay the mortgage is needed. The letter should have an area to advise the lender why the situation is beyond the customer's control. The letter writer should express his intent to fulfill his financial obligation, and explain to the lender why mitigating the loan is the best thing for the lender.

Generally, there are three types of loss mitigation lenders consider: a loan modification, a short sale and a deed in lieu of foreclosure. Each case requires the lender to look at foreclosure letters differently. With a short sale, the lender is usually concerned about the amount of sale the property brings and if there are any other liens attached to the property. A loan modification has the customer assuring the lender the payments can be made once they are altered, and the letter should detail plans to ensure that is possible.

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