Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
When you get behind on your mortgage payments, getting financial hardship assistance could potentially help you a great deal. There are a variety of options and programs out there that might be able to help you get back on track with your mortgage. Here are a few things to consider about qualifying for financial hardship assistance with your mortgage.
Working with Your Lender
One of the first things that you should do in order to determine if you qualify for financial hardship assistance is to contact your lender. As soon as you start to get in trouble and miss some payments, you need to call your lender. Contacting your lender is especially important if you have already gone into default and started receiving notices from the lender. You never know when your lender may be willing to work with you to come up with a resolution.
In some cases, they may be willing to go through a loan modification process with you. This means that they would potentially change the interest rate on the loan, change the monthly payment, get rid of late fees, or even extend the amount of time that you have to pay off the loan. When you are in trouble financially, a loan modification could be exactly what you need to get things under control again.
Private Mortgage Insurance
In some situations, you might be able to get help from your private mortgage insurance provider as well. Most people look at private mortgage insurance as something that does not benefit them directly. They only collect a certain amount of money from you as part of your mortgage payment each month and never offer you any benefits. However, they have been known to help individuals that are going through tough financial times and cannot afford to pay their mortgages. From the point of view of the private mortgage insurance company, it will likely seem better to help you out a little bit financially than to see you go into foreclosure. If the house goes into foreclosure, the private mortgage insurance company is going to have to pick up the slack for you. Therefore, they sometimes have programs that can make your mortgage payment for you during tough economic situations. For example, if you lose your job, they might be willing to make your payment for you for a few months until you can find another one.
In order to qualify for financial hardship assistance, you are most likely going to have to write a financial hardship letter. A financial hardship letter is a document that states exactly what is going on in your financial life. You are going to try to convey to the lender why you are unable to make your mortgage payments. In the letter, you will specifically ask for what you need. With the hardship letter, you will need to provide financial documentation such as bank statements, a list of debts and other important information that they might need.
- Should You Refinance? Make Sure the Timing is Right
- Home Equity Loans for People with Bad Credit
- Alternatives to Getting a 2nd Mortgage
- 3 Common Short Sale Mistakes
- FHA Loans for a First-Time Home Buyer
- How to Get Approved for an FHA Loan despite Bad Credit
- What To Do When Mortgages Default
- FHA Eligibility with Bankruptcy and Foreclosure
- Second Mortgages: Advantages and Disadvantages