Forclosure letters

:smiley: does anyone have a sample letter that they send to home owners in forclosure. This would help me out a great deal, thanx in advance.

Cmorgan I remeber what it was like to be a newbie on the board…Hell I’m still new with only a handful of posts and those were mostly questions for the veterans so it feels good to hopefully help you out a bit…Here is one I found on here toweard the end of last year… I think the author’s name was John Micheal and he said he had 16% response on it…Very well thought out and detailed in my opinion and it came as a freebie. I would proof read it and customize it to better serve you but it’s a great base to begin with…Good Luck

I am truly sorry that you are facing this problem but do not give up!

I noticed in the public record of Illinois, that a foreclosure action has been filed against your property and you may not be aware of this. If this is the case, I urge you to contact your lender, to clear this issue promptly. Your property is at risk.

Perhaps I can help; I am a serious real estate investor with experience in the foreclosure process.

If I may be of service in this matter, it would be my pleasure to do so. You may contact me at

I handle all the paperwork and pay all cost.

You get a quick response with no hassles, no pressure, and your worries will be behind you.

Don’t wait until it’s too late, a fresh start is only a phone call away and we can keep the foreclosure off your credit records.

I am not able to help every one, but I will try! Call me and give me and opportunity to let you know how I can help you at xxxxxx.

I am a serious investor and I would like to speak with you but even if you do not call me, I feel it would only be right to let you know all of the options that you have at your disposal.

Loan Forbearance or Modification

A strategy worth pursuing is called loan forbearance. The loss mitigation department of your mortgage company may make arrangements with you to pay some of the back payments now and the balance within a certain time period. A typical example – You owe $9,000 in back payments, attorneys’ fees, etc. Your mortgage company may accept $4,500 now and $750 per month for the next 6 months. Of course, you would have to resume making your normal monthly payments. A loan modification is a permanent change to your mortgage that may lower your payments and the delinquent payments may be added to the mortgage balance. A loan modification or forbearance is easier to arrange prior to the Mortgage Company filing a foreclosure lawsuit. Some lenders will not consider this after filing, but it’s worth trying.

Reinstate Your Mortgage

You have up to and including the morning of the auction to catch up your payments. Perhaps you could borrow from friends or family, credit cards or retirement program. You may be able to arrange a second mortgage to catch up the back payments and fees. Check in the Yellow Pages under “Mortgages”. There are a number of companies listed that claim they can help in these situations


You’ve probably received letters from mortgage brokers and lenders saying you are already pre-approved for a new mortgage. The fact is that is very difficult to arrange new financing when you’re already in default on your existing mortgage. Be very cautious about sending advanced fees of $300.00 to $600.00 to lenders or mortgage brokers. Usually it’s a ploy to take advantage of your financial situation.
Arranging new financing will depend on your income, credit report, value of your home and the amount of your equity. If you’re not sure of the value of your home, give me a call. Usually I can give you a fairly accurate estimate of value within a ½ hour. I would be glad to help and of course, there’s no obligation. If you attempt to refinance, you should always have a backup plan available to you. Many times, I have had homeowners call days before the auction saying their financing did not go through, and then it’s too late!

Chapter 13 Bankruptcy
A viable alternative if your financial situation has improved, filing bankruptcy prior to the auction will stop the sale. Unfortunately for most people, it only postpones the sale for one or 2 months. Immediately after filing a Chapter 13 Bankruptcy, you will have to file a repayment plan with the courts. This plan has to show that you have sufficient monthly income to pay basic living expenses such as food and utilities and other monthly payments such as credit cards, car payments etc. In addition, your income must be sufficient to resume making your monthly mortgage payments. All past due amounts are usually spread out between 24 and 60 months i.e. If you owe $9,000 in missed payments, attorneys fees, etc. if spread out over 48 months would be an additional $187.50 due each month to the court appointed trustee. If you feel as though you have the income to immediately begin repayment of all your debts and the courts agree, this may be a good choice for you to save your home. Over the years, I’ve spoken with many individuals who filed for bankruptcy protection only to have their cases dismissed. Not only were they out their attorney’s fees (usually $1,000 - $2,000) but now had a bankruptcy and foreclosure on their credit report. Bankruptcy is considered an action of last resort.

Sell Your Home on the Open Market
This is probably the most under utilized option available to you. I have relationships with over 75 realtors in the Chicagoland area and could very well assist you in getting your house sold. The fact is selling your home will give you the most money in your pocket. The market is very active and we’ve all experienced significant appreciation in the past few years. Your home may be worth a lot more than you think! If you have recently been served with a foreclosure lawsuit you still have enough time to sell your home which will provide you and your family the greatest amount of money to help provide a fresh start for you and your family.
Don’t procrastinate; explore all the options available to you. If saving your house seems unlikely, you should call me as soon as possible! Placing you home on the market a few weeks or a month from now may not give us enough time to find the buyer, arrange financing, and schedule the closing. Because of the time sensitive nature of your situation, this is not a time to go it alone as a “for sale by owner” or list your home with a friend or friend of a friend.

Can Investors Can Buy Your Home
If efforts to save your home have been unsuccessful and time doesn’t permit selling your home on the open market or you just don’t want to, but want a quick sale with no problems, call me. I’ll make you a cash offer and close quickly usually in two to five days. If you need additional time to relocate, that can easily be arranged.

You have probably been swarmed by investors calling you and knocking on your door. If not yet, you soon will be. A Word of Caution, some investors are very aggressive and unethical. Some investors will tell you that “You only have one or two weeks before the auction and your furniture and possessions will be placed on the sidewalk or street by the Sheriff’s Department.” This scare tactic is usually accompanied by a ridiculously low offer.

The fact is you may have a few months before that could happen, but this is not a time to sit back and relax. Pursuing the options available to you in regards to this foreclosure should be your highest priority from the time you wake up, until the time you go to sleep. Don’t be rushed or scared into making a bad situation even worse, you do have options. If a quick sale of your home is your goal, talk with several reputable investors, including myself. I can promise that I will treat you fairly, with dignity and complete honesty. When I make you an offer and say you will walk out of the closing with $1,000, $5,000, or $20,000, that’s what you will walk out with! I don’t believe in last minute negotiating at the closing table. If you are looking for a quick – no problem solution call me at xxxxxxxxxxxx

Let Your Home Be Sold On the Courthouse Steps
By far, the worst option available to you! Many people feel “I have no equity, let the bank take it”, but homes that are sold on the courthouse steps typically sell between 50% and 70% of their fair market value. Moreover, if a bank suffers a loss due to the pending foreclosure action against you, they also have an option. They can file a deficiency judgment against you and pursue you for the amount of their loss.

Typically ten days after the foreclosure auction, a certificate of title will be issued by the courts to the new owner. If you have not voluntarily vacated your house at this time, you could be forced to move out within 24 hours. I make my living by providing homeowners without hope, a solution that fits their needs and puts cash in their pockets. Call me at xxxxxxxxx

As with any serious legal situation the reader is encouraged to consult legal counsel regarding any points of law. This information should not be used as a substitute for competent legal advice.

If you own property-facing foreclosure and are interested in selling, we have the capability for quick, private closing without the hassles of listing the property or completing possible repairs. Call me at xxxxxxxxx


:smiley: thank you very much for the response, this helps me out very much.

Will anyone in foreclosure really read that much. Thats like 2-3 pages.

I always think get to the point quick and don’t burden them.

I think it is good to note that in some states, giving such advice to people without being an attorney could cause more headaches than you may have bargained for. With that said, a 16% response…not too shabby! Thanks for sharing. The first part of the letter expresses sincerity, and is probably about as far as anyone should go. (Not to mention, it’s probably as far as most people read!) :wink:

When I first read it, sorry, skimmed thru it, I thought it was way too much but then I tried to put myself in the position of some of these homeowners…They get bomarded probably with 15-20 post cards at minimum from novices (including me) on how we can help them out…Then when a letter like this, despite it being pretty canned, lays out all of these options I think the readers buy in and this letter creates separation from the pack as far as typical correspondence. Very wordy but I tried this on my target group and I quadrupled my response…I got u around 8% response on 300 mailers so I saw the benefit of it. I have 2 shortsales that I am working on here in Chicago from responses to the letter…I’m not greedy, as I’m sure the original author wasn’t, so feel free to incorporate this into your marketing if you think it will work for you…

Good Luxx