| If you are facing a financial situation that is making | | | | A hardship loan modification could give you a much |
| your mortgage unaffordable, a hardship loan | | | | lower mortgage payment by lowering your interest |
| modification could be an option. President Obama has | | | | rate all the way down to 2%. The goal is to reach a |
| implemented a federal subsidized loan workout plan | | | | target payment that will equal just 31% of your |
| for those homeowners who wish to keep their home | | | | household gross monthly income. The good news is |
| but are facing a financial hardship situation. Billions in | | | | that the payment will include principal, interest, |
| bailout funds have been set aside to help keep | | | | property taxes and homeowners insurance. That is a |
| borrowers in their homes and avoid foreclosure. | | | | very affordable payment and one that you should be |
| What is an acceptable situation to qualify for a | | | | able to pay and maintain. |
| hardship loan modification? The Treasury Department | | | | Your lender will ask you to submit a hardship loan |
| has published a list of reasons that justify a loan | | | | modification application. This will include a hardship |
| workout. However, since each situation is unique, a | | | | letter, a financial statement and proof of your |
| well written hardship letter explaining your | | | | income. Based on the information you provide, a |
| circumstances will make a huge difference in | | | | decision will be made if you qualify for the program. |
| determining if you will get help or not. Here are some | | | | So, it is up to you to learn the basic approval |
| of the general guidelines: | | | | guidelines and then take a few hours to prepare an |
| - Loss of income | | | | accurate and acceptable application. You do not have |
| - Increased expenses | | | | to pay someone to do this for you. You do not have |
| - Using credit cards for daily living expenses | | | | to figure it out all by yourself, either. There is a |
| - Depleting reserves-savings, retirement, etc. to make | | | | software program designed just for homeowners |
| payments | | | | that will do all the calculations for you. Take a few |
| - Military service | | | | hours to be certain that you have prepared your |
| - Medical expenses | | | | paperwork correctly. Your time and effort will be |
| - Divorce, separation | | | | rewarded when you save your home. |
| - Adjustable rate reset to higher payment | | | | |