Financial Hardship Assistance: Do You Qualify?

If you are having problems with your mortgage, financial hardship assistance could be something that helps you tremendously. Many financial institutions offer financial hardship assistance and could help you determine your eligibility. If your mortgage is in default or getting close to it, you will have to do something, or risk losing your house. In order to qualify for financial hardship assistance, you will have to meet certain standards. Here are a few ways to find out if you can qualify for financial hardship assistance. 

Extenuating Circumstances

One of the most important factors that lenders like to see when they grant a financial hardship is that you have extenuating circumstances that contributed to your problems. If you cannot provide extenuating circumstances, there is usually not much leniency. They want to see that something unexpected happened that was out of your control. For example, the death of a family member or an extreme illness is usually a sufficient reason to qualify for hardship assistance. Big things like divorce, disability, and similar situations are considered extenuating circumstances and a lender is much more likely to grant you financial hardship assistance as a result of one of these. Just make sure that you have a good reason for asking for help. 

Financial Qualifications

The lender is also going to want to take a look at your financial statements before they give you hardship assistance. Even if you do have some kind of bad situation happen to you, you still might not be handling your money properly. You might have plenty of money coming in to handle paying for the mortgage. However, you waste it all on entertainment expenses or buying extravagant things. If this is the case, the bank is not going to be willing to help you.

You Must Ask

When your home goes into default, usually you will need to ask for help. Banks and mortgage lenders do not just volunteer the information that they can help you if you get in trouble. Otherwise, they may have a lot more people relying on them when they do not need to. When you get a default notice, you need to contact the bank and let them know that you want help. You will have to write a financial hardship letter to them and detail everything that has happened to cause your payment delinquency. 

Once they receive your letter and talk to you about the situation, there are a number of options that they may consider. They may be willing to modify your loan and give you a cheaper interest rate and payment to get your financial situation back under control. They can also reduce your loan balance so that your loan amount is lower and affordable. Just remember that they will not offer the information to you, unless you first seek it out. 

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