Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6



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Sample Lender Letter

September 18, 2006

Friendly Mortgage Company
123 Main Street
San Francisco, CA 94108

RE: Loan Number 14365-3324
345 Anywhere Street
San Francisco, CA 94115

Dear Lender:

I am writing to ask for your assistance. On November 15th of last year, while at work on my job with Heavy Construction Company, I fell and broke my leg. Since that date I have been unable to work and have incurred additional medical bills not covered by insurance. It is for this reason that I have not made my December and January payments. I have enclosed an accident report from my company verifying the date of my injury. I’ve also attached a letter from my doctor indicating that I will be able to return to work on May 1st.

I need your help in order to keep my home from foreclosure. I would like to make1/2 payments for the next 4 months. Beginning with June, I would like to make a full payment and 1/4 of the missed payments until such time as I am completely current. This should take me about 8 months to get back on track. I do not anticipate having any difficulty returning to work in May. I have been with this company for 11 years and anticipate retiring with them in the future.

I am working with a financial counselor from the BALANCE Housing Education Program. I have prepared a budget, which I’ve enclosed for your review. You can see that with your assistance, I will be able to make it financially until I return to work full-time.

My telephone number is (415) 555-1234 and the best time of the day to reach me is between 2pm and 5pm each afternoon. If there is any additional information that I might provide, please let me know immediatly.

Thank you very much for your consideration and assistance in helping me save my home from foreclosure.

John Q. Public


Sample Creditor Letter

September 18, 2006

XYZ Credit Corporation
Central City, CA 94123

Dear Creditor:

Due to a lay-off, I am temporarily out of work and as a result, am experiencing financial difficulty. I have analyzed my current situation with the help of a BALANCE counselor.

After making a strict budget for my expenses (budget enclosed) I find it necessary to ask each creditor to accept a reduced payment for the next three months. By then, I anticipate being back to work and earning as usual.

I would appreciate your cooperation in making the payment plan work. In place of the regular payment of $50, I request that you accept payments of $30 per month during this emergency. I will pay before the 30th of the month.

You can be sure that I will resume normal payments as soon as possible. I feel very bad about having to ask for the consideration and hope you understand. If there are any changes in my situation, I will notify you of them as soon as possible.


John Q. Public
345 Anywhere Street, San Francisco, CA 94115
Account Number 1234 5679 1011 1213