Strategic Communication with Your Lender
Professional strategies, proven scripts, and templates for effective communication with your mortgage servicer during foreclosure
Important: Document Everything
Keep detailed records of every conversation with your lender. Note the date, time, representative's name, and what was discussed. This documentation can be crucial if disputes arise later.
Being prepared will make your conversation more productive and help you get the information you need.
Documents to Gather:
- •Your loan number (from mortgage statement)
- •Notice of Default letter
- •Recent pay stubs or income proof
- •Bank statements (last 2-3 months)
- •List of monthly expenses
- •Hardship explanation (written or notes)
Information to Know:
- •Your current monthly income
- •How many payments you've missed
- •Total amount you're behind
- •Why you fell behind (job loss, medical, etc.)
- •Whether your situation has improved
- •What you can afford to pay monthly
Opening the Call
Say this:
"Hello, my name is [YOUR NAME]. I'm calling about my mortgage loan, account number [LOAN NUMBER]. I recently received a Notice of Default, and I'd like to speak with someone in the Loss Mitigation or Foreclosure Prevention department about my options to avoid foreclosure."
Tip: Be polite but firm. You may need to be transferred to the right department. Write down the name of every person you speak with.
Explaining Your Situation
Say this:
"I fell behind on my payments due to [REASON: job loss, medical emergency, divorce, etc.]. I'm currently [NUMBER] months behind. My situation has [improved/is improving], and I want to work with you to find a solution. I can now afford to pay [AMOUNT] per month. What options are available to help me keep my home?"
Tip: Be honest about your hardship and your current financial situation. Lenders are more willing to work with homeowners who communicate openly.
Asking About Your Options
Ask these questions:
- "Am I eligible for a loan modification to lower my monthly payment?"
- "Can I set up a repayment plan to catch up on missed payments over time?"
- "Do you offer forbearance or a temporary payment reduction?"
- "What is the total amount I need to pay to reinstate my loan?"
- "How much time do I have before the foreclosure sale?"
- "What documents do I need to submit to apply for assistance?"
- "Is there a deadline for submitting my application?"
Document the Conversation
Write down:
- • Date and time of call
- • Representative's name and ID number
- • Department (Loss Mitigation, Foreclosure Prevention, etc.)
- • Options discussed and eligibility requirements
- • Documents requested and where to send them
- • Deadlines for submission
- • Next steps and follow-up date
- • Reference number or case number (if provided)
Closing the Call
Say this:
"Thank you for your help. Just to confirm, I need to submit [DOCUMENTS] by [DATE] to [EMAIL/ADDRESS]. I'll receive a response within [TIMEFRAME]. Can you provide me with a reference number for this call? And can I have a direct phone number to follow up if needed?"
Tip: Always ask for written confirmation of what was discussed. Request that they email or mail you a summary of your conversation and next steps.
About Your Account:
- Q:"What is the exact amount I'm behind, including late fees and other charges?"
- Q:"Can you provide an itemized breakdown of what I owe?"
- Q:"What is my current interest rate and remaining loan balance?"
- Q:"Have any fees been added to my account since I received the Notice of Default?"
About Foreclosure Timeline:
- Q:"What is the deadline to cure my default and avoid foreclosure?"
- Q:"Has a foreclosure sale date been scheduled? If so, when?"
- Q:"If I apply for loss mitigation, will the foreclosure process be paused?"
- Q:"What protections do I have under federal law while my application is being reviewed?"
About Loss Mitigation Options:
- Q:"What loss mitigation programs am I eligible for based on my situation?"
- Q:"What would my new monthly payment be under a loan modification?"
- Q:"How long would a repayment plan last, and what would the payments be?"
- Q:"If I'm approved for forbearance, how will the missed payments be handled afterward?"
- Q:"Will any of these options negatively impact my credit score?"
About the Application Process:
- Q:"What documents do I need to submit, and in what format?"
- Q:"Where should I send my application—online portal, email, fax, or mail?"
- Q:"How long does the review process typically take?"
- Q:"Will I receive written confirmation once my application is received?"
- Q:"Who can I contact if I have questions or need to check the status?"
Your notes are saved automatically to your browser and will persist across sessions.
A hardship letter explains why you fell behind on payments and demonstrates your commitment to resolving the situation. Customize this template with your specific details.
[Your Address]
[City, State ZIP]
[Phone Number]
[Email Address]
[Date]
[Loss Mitigation Department]
[Address]
[City, State ZIP]
Loan Number: [Your Loan Number]
Property Address: [Property Address]
Option 1 - Job Loss:
I fell behind on my mortgage payments due to unexpected job loss. I was employed as a [JOB TITLE] at [COMPANY NAME] for [NUMBER] years, but I was laid off on [DATE] due to [REASON]. During this period, I exhausted my savings to cover essential expenses and fell behind on my mortgage. I have since found new employment as a [NEW JOB TITLE] starting [DATE], and my monthly income is now [AMOUNT].
Option 2 - Medical Emergency:
I experienced a serious medical emergency in [MONTH/YEAR] that required [HOSPITALIZATION/SURGERY/TREATMENT]. The medical bills and time away from work created significant financial strain. I am now recovered and back to work full-time, but I accumulated debt during my recovery that made it impossible to keep up with my mortgage payments.
Option 3 - Divorce/Separation:
I recently went through a divorce/separation, which significantly impacted my financial situation. My household income was reduced from [PREVIOUS AMOUNT] to [CURRENT AMOUNT] when my spouse moved out in [MONTH/YEAR]. I am now the sole provider for [NUMBER] children and have been working to adjust my budget to my new circumstances.
- Loan modification to reduce my monthly payment
- Repayment plan to catch up on missed payments over time
- Forbearance to temporarily reduce or suspend payments
- [Any other option discussed with your servicer]
- Pay stubs from the last [2-3] months
- Bank statements
- Tax returns
- Proof of hardship [medical bills, termination letter, etc.]
- Current budget/expense worksheet
[Your Printed Name]
DO:
- Be honest about your financial situation
- Stay calm and professional, even if frustrated
- Document every conversation in detail
- Follow up in writing after phone calls
- Submit documents by the deadline
- Keep copies of everything you send
- Ask for clarification if you don't understand
- Request written confirmation of agreements
DON'T:
- Ignore calls or letters from your lender
- Lie or exaggerate your financial situation
- Make promises you can't keep
- Accept terms you can't afford long-term
- Miss application deadlines
- Assume verbal agreements are binding
- Pay anyone upfront fees for "foreclosure help"
- Give up if your first request is denied
Need Help Navigating the Process?
EnterActDFW can provide guidance and support as you work through your options. We're here to help you understand your choices and make informed decisions.
Ready to Talk to Your Lender?
Need help preparing for the call or want us to handle it for you? Schedule a free consultation and we'll guide you through every step.