Friday, April 7, 2017
What Is A “Hardship” Condition For A Mortgage Modification?
A mortgage modification can save you thousands in interest on your mortgage payment, and free up money each month so your budget is not so tight. But there are some things you have to do in order to receive a modification, among them is to apply for one with your lender. Many times the application will contain a section where you explain why you are seeking a modification of your mortgage loan. For most people, the reason is that the payment is too high to fit within their finances. A busted budget can be the result of several things happening, such as loss of job or an unexpected medical expense. Whatever the cause, when your income stream is reduced, it becomes difficult to continue paying all of your bills. This difficulty can also be referred to as a financial hardship, and when you ask for a mortgage modification this hardship is probably the reason you need the loan terms changed.
Here are some common examples of a “hardship” condition when asking your mortgage lender to modify your loan:
• The payment amount is so high that you are not able to pay for other necessities.
• You have other expenses that must be paid in order to maintain a reasonable standard of living, such as medical bills for an ongoing illness or there is a need for expensive treatment for a disease.
• You have lost your job or been laid off, and can only find part time work or a job at a much lower pay scale.
In each of these instances, the homeowner is suffering financially due to circumstances outside their control. There are other hardship conditions that might fit the facts of your case, and those can be reported to your lender as well when you are seeking to modify your mortgage. You are required to be truthful and complete when filling out the modification application, so be sure to include all relevant data about your financial condition. A more detailed application can result in a smoother modification process, but you should also expect to encounter some hiccups along the way. That is just the nature of the beast, but it does not mean you will be denied. A good approach is to let a knowledgeable debt management attorney help you. We have experience negotiating modifications and can help you too.
For more information about hardship conditions for a mortgage modification, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.