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  • underwatermortgageWriting the ‘Hardship Letter’

    One of the items your Bank or  lender will  require  from you  during the loan modification process is a hardship letter. A hardship letter is typically a written reason as to what  happened that  has caused you to fall behind on your mortgage and it is a key item  in helping you stop foreclosure or modify your mortgage agreement.

    This letter acts much like an outline or biography of your current issues that are affecting your ability to meet your financial obligations, and by this we mean not being able to afford your mortgage.  Lenders do look for what is known as a hardship letter when a borrower applies for a loan modification. Such a letter is a requirement for modification applications under the government’s Making Home Affordable program.

    A hardship letter is not the basis for modification approval that depends on the borrower’s financial situation and the red tape of the various government and Bank programs. Rather, the purpose of the hardship letter is to explain upfront, in simple language, why borrowers missed payments, and what they propose as a solution.
    less is more when it comes to writing a hardship letter,giving them exactly what they need and nothing more
    The lenders’ loss mitigators, faced with mountains of modification requests, are unlikely to spend time reading more than the first few lines of each letter.
    And there is always the risk that borrowers who go on at length could unknowingly trip themselves up with unnecessary details that raise red flags for a mitigator.

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    When the housing bubble burst, home values dropped, and millions of homeowners who did the right and responsible thing—shopped for a home, secured a mortgage, and made their payments on time each month—were left with houses worth less than they paid for them and mortgages worth more than their homes. Today, many of these homeowners are locked out of refinancing because they are underwater.

    The hardship letter should open with a succinct explanation of why the borrower stopped paying the mortgage. The letter should cite a reasonable specific hardship, like a lost job, illness or reduced income.
    Next, the letter should briefly cite any steps the borrowers took to avoid defaulting on their loan, like cutting household expenses or tapping into savings.
    If their financial situation has since improved, or is likely to, borrowers should mention that as evidence that their hardship was temporary and won’t hamper their ability to make payments on a modified loan.
    Finally, the letter should state exactly what borrowers are applying for. Is their proposed solution a lower interest rate, for example, or a principal reduction?
    Borrowers who are underwater that is, owe more on their mortgage than their property is worth may ask their lender to consider a short sale, in which the house is sold to another buyer for less than the amount owed. Its widely  advised that homeowners considering a short sale apply to the bank before putting their house on the market.
    The fact that a home has lost considerable value should not be cited as the sole hardship. The borrower might include that information in the hardship letter, but he or she must also explain the inability to pay the mortgage

    In the case of a short sale, the hardship might be the borrower’s need to sell right away because of a job transfer or long-awaited employment opportunity elsewhere.
    One of the items your lender or servicer will ask for during the loan modification process is a hardship letter. A hardship letter is a written explanation as to what “event” has caused you to fall behind on your mortgage and it vital in helping you stop foreclosure.

    This letter acts much like an outline or biography of your current “life” issues that are affecting your ability to meet your financial obligations.

    Georgia State Government Programs that offer Mortgage Assistance

    There are many agencies and programs in the state of Georgia that want to help their citizens fight foreclosures on their homes, retain their homes and also to help purchase homes.  Georgia not only has these agencies that provide counseling, workshops and guidance, but they also have grants that support the state economy and increase access to better jobs and education by offering financial assistance that has loan forgiveness.

    Georgia’s Department of Community Affairs helps prevent foreclosures, offers bridge loans in the form of mortgage assistance and other aid to those who have lost work because of circumstances not their fault, through a program called “Homesafe Georgia,” that is funded by the United States Government’s “Hardest Hit Fund (HHF).”


    California Mortgage Help 2012


    Quite honestly, the economy is still in the recovery mode. Because of this – there are people who continue to have problems making their respective payments on their mortgages each and every month. This is especially true in the state of California. Well, the good news is – there is help. California mortgage help is available for those finding it difficult to make their mortgage payments. The key will be to know exactly where to look, and what to look for in terms of your specific financial difficulty.


    In the paragraphs that follow, you are going to learn some detailed information that pertains to help with your mortgage. After reading through the information provided below, you’re going to have a better understanding of the steps you need to take to get back on track, as well as the programs available that will help you do so.


    The Different Forms of Financial Hardship and the Programs available to Help you Deal with Them.


    DSHA Mortgage help

    The premier state organization providing mortgage assistance in Delaware is the Delaware State Housing Authority. The Organization was established in 1968 and was later incorporated into the Community Affairs Department in 1970, and the Delaware Economic Development Office in 1987. Finally, it was incorporated in 1998.

    In 1968 the DSHA started with a working budget of $100,000. Those initial assets have since grown to $500 million, mainly thanks to the issuing of tax-exempt revenue bonds.


    PHH Mortgage Help

    In today’s economy, more and more homeowners are struggling with maintaining monthly mortgage payments.  As expenses rise, some homeowners are facing a crisis such as foreclosure.  PHH Mortgage, a leader of the nation’s lending institutions, offers several programs to help the homeowners meet their obligations, become current on their mortgage payments, and avoid foreclosure.

    PHH is not just a lender; it is also a servicer of loans made by many other lenders.  This means that, with well over $40 billion in loan experience, PHH can find the best mortgage relief solutions for home owners.

    PHH works in conjunction with many government relief programs within the Making Home Affordable Act. (more…)

                 Troubled Asset Relief Program: Help for Struggling Homeowners

    In March of 2010, President Obama released a series of programs known as the Troubled Asset Relief Program aimed at helping financially struggling homeowners.  In response to the nearly 25% of American homeowners who found themselves underwater, or what is termed as being “upside down” in their mortgages, the President’s plan lowers payments through refinancing and loan modification programs with new government-backed mortgages. The government is offering initiatives for loan providers and banks to write off some principal amounts due on loans for homeowners through these modification programs, rather than just lowering interest rates.  These plans are expected to help three to four million struggling property owners over the next few years.

    The government emphasized that no taxpayer money will be spent on these programs, and that the monies needed for the plan would be instead taken from $50 billion set aside for the Troubled Asset Relief Program.


    Making Home Affordable Act Eligibility and You

    March of 2010 saw an expansion of the Making Home Affordable Act, the Federal Housing Administration’s refinance program, which will give responsible homeowners the chance to remain in their homes despite financial hardships and duress.

    The Treasury Department and HUD, the Department of Housing and Urban Development, created these expansions to allow homeowners a chance to renegotiate their mortgages despite being upside down in their mortgage, a term used to mean owing more on the house than the property is worth.  These owners can now qualify for a reduced rate FHA loan.


     US Bank Home Mortgage Assistance Programs; Relief Programs for Homeowner

    One of the top lenders in the country, US Bank is now offering mortgage help for homeowners who are struggling to make ends meet, missing mortgage payments, or who owe more on their property than it is worth.  Some, such as HARP and HAMP are government sponsored while other options are unique to US Bank.

    The first option, a US Bank Repayment plan, allows a homeowner who has missed payments in the past to pay these past due amounts in monthly installments.  The US Bank Repayment plan is a viable option if the homeowner has extra funds at the end of each month and can apply these funds towards the mortgage plus the repayment amount.  US Bank offers an online link to determine what repayment plans are available, and which is best for the homeowner.

    Another US Bank mortgage relief program is the Hardship Loan Modification.  US Bank will combine all overdue interest and principals due because of missed payments and add them to the term of the loan, thus extending the loan.  A 30 year loan, for example, might be extended to a 30 year four month term if the mortgage payments are four months behind.  This is more appropriate for a homeowner who doesn’t have extra money at the end of the month but can cover mortgage payments and applicable fees.


    South Carolina Mortgage Help

    How Families Can Retain Their Homes through SC Mortgage Help

    Failing to pay your mortgage bills promptly can lead to the foreclosure of your home. There is help for people who need South Carolina Mortgage Help.  Your mortgage lender uses foreclosure as a legal means to repossess your precious home. In case this happens, people are forced to move from their homes. Often, if the value of your piece of property does not amount to what you owe the mortgage lender; further steps are employed to help recover the missing amount. When this takes place, on top of owing the mortgage lender additional amount in loans, you risk losing the home of your family and seriously harm your credit rating. The following are tips for SC mortgage help for families to retain their homes.


                                 Bank of America: Mortgage Relief Program

    Many homeowners are faced with losing their homes due to unemployment, underemployment, medical costs or deep debt concerns, but Bank of America has programs designed to stop the foreclosure process and help homeowners stay where they belong; in their own homes.

    Bank of America has agreed to a settlement with the Department of Justice and the Attorney General’s office called the global settlement.  This agreement allows homeowners to reduce the principal of their loans, lower interest rates, and provide appealing short sales terms.  It also provides loan modifications and refinancing for qualified homeowners.  Bank of America is providing the following per the agreement: (more…)

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