Financial Hardship Assistance for My Mortgage

Financial hardship assistance is available to home owners in order to help stave off a foreclosure. These programs are designed to assist home owners and lenders by finding ways to reduce monthly costs, rewrite the terms of higher interest rate or upside down mortgage and avoid the expenses associated with foreclosing a home. It is in the interest of a home owner to use this assistance when available in order to keep them in the home. It also benefits lenders because it keeps a paying mortgage holder in the home and avoiding the associated foreclosure expenses.

Who Provides Financial Hardship Assistance?

Both the federal and state governments have the programs that provide financial hardship assistance. The types of programs vary in their scope and the level of assistance. The existence of a program does not necessarily mean that every person will qualify.

How to Find Financial Hardship Assistance

A borrower that faces a situation where they need financial assistance should contact their lender immediately to determine what may be available in the form of financial assistance. A lender should be able to provide information on the various programs that the borrower qualifies for that will help meet their loan obligation. There are also private loan sources that are available that should be investigated and pursued if public source are unavailable or inadequate to meet the borrower’s needs.

Requirements for Financial Hardship Assistance

Some programs can provide for loan forgiveness or relief from a portion of the outstanding mortgage. These programs may have specific qualifications such as disaster relief or military service requirements attached to them. Other programs may require that the original mortgage be one that conforms to the lending requirements of the Federal Home Mortgage Loan Association (Freddie Mac) or Federal National Mortgage Association (Fannie Mae). A lender or financial counselor can provide assistance in determining which program is right for the borrower.

The need for a mortgage financial hardship assistance program should not be viewed in bad terms but as an opportunity for a borrower to restructure the terms of a bad loan. By taking advantage of those programs in which a borrower qualifies, the monthly payments or the terms and conditions associated with the loan can be structured in a way to make it easier to deal with and ultimately save a home for the homeowner.