A homeowner must exhibit a legitimate reason for falling behind on mortgage payments, known as hardship.
A homeowner must have one or both of these qualities in order to be considered for a loan modification by their lender:
A hardship generally falls in to one or more of the categories below:
1) Increased expenses-medical bills, new child, back taxes
2) Decreased income-reduction of hours, pay cut, loss of employment
3) Failed business
4) Interest rate or payment increase on first and/or second mortgage
5) Personal or family illness
6) Death in the family
7) Divorce or separation
Each homeowner's situation will be different and will be evaluated on an individual basis by their lender(s). Most lenders will not consider a homeowner for a loan modification unless they can show hardship. The lender will generally require documentation to prove the hardship.
If you have questions about hardships or for your personalized foreclosure prevention consultation, contact us today.
The information contained in this report is deemed to be accurate but is not guaranteed.