It is unfortunate that borrowers cannot always fulfil their mortgage obligations and fall behind on their payments. Working for a lending company, you may come across many situations in which mortgage payments have not been paid for months owing to unemployment, divorce or any unforeseen circumstances that borrowers have been struck with. While mortgage finance companies give a lot of leeway to their clients, there are times when providing leeway is not possible.
A letter of intent to foreclose mortgage is usually written when a client has fallen behind on his payments over a period of a few months. This letter usually has a somewhat harsh tone which indicates that if the borrower does not pay up soon, the mortgage company is liable to sell off the property for which the loan was initially granted. A letter of intent for foreclose mortgage is not a final warning but it is a warning nonetheless. It talks of dire circumstances if outstanding payments are not managed and acts a as a deterrent when lapsing on further payments.
Letters of intent to foreclose mortgage are written before letters to foreclose mortgage are issued. Companies are required to give borrowers some notice to make payment arrangements before they take a drastic step such as selling their properties. Here is a sample letter of intent to foreclose mortgage for your reference:
January 9, 2015
Mr. Dylan Johnson
36 Yale Turn
Toluca Lake, CA 62735
Re: Warning of Foreclosing Mortgage
Dear Mr. Johnson:
Please refer to the enclosed mortgage statement that details that you have fallen behind your payments for the last six months. The last payment that we received from you was vide check # 251123 in June 2014 and we have not heard from you since then.
We have tried contacting you through telephone and email several times but have not received any response from you. This has forced us into a situation where we have no choice but to send you notice of a mortgage foreclosure in case these outstanding payments are not managed on an immediate basis. Your failure in responding to us and clearing the matter indicates your reluctance in paying off your liabilities to us and will eventually show up as bad credit history.
We request you to contact us immediately to sort this out so that it does not have any repercussions on you such as the selling of your property or eviction from it. If we do not receive a reply from you within 10 days of the issue of this letter, we will have no choice but to go ahead with mortgage foreclosure activities.
Mortgage Banker, Bank of America
4723-23 Yen Street, Toluca Lake, CA 28273
000.333.7777, kinder @ boa . com