Stop House Foreclosure – Financial Hardship Paperwork
In order to get your mortgage company to work with you to stop house foreclosure, chances are that you will need to provide them with a whole lot of documented proof of financial hardship. Financial hardship requirements and paperwork varies by mortgage company but here are a few things you should be prepared to provide them.
1. A current overview of your income and expenses. In order for them to decide if they are willing and/or able to work with you, they will need to know what your current financial picture looks like. Here is where you are going to need to get honest with yourself and your mortgage company about what your financial picture really looks like. Doing this exercise might also help you figure out where you can cut back on your expenses. If you want to stop house foreclosure, you will need to find areas to cut back.
2. Documented proof of your current income. If you have a job, this will mean getting pay stubs. If you have incoming coming in from other sources, you will have to provide proof of that as well. I had child support and maintenance payments that I had to provide proof of. Sending them copies of checks worked in my case.
3. Tax returns for the past few years. My mortgage company required the past 3 years of tax returns. If you file a 1040, just to be on the safe side, I would provide them with any schedules (A, B, etc) and any additional forms as well as the 1040 form itself.
4. Hardship letter. Here is where you explain what your financial hardship is. Here is where you get to make your case. Explain that you want to stop house foreclosure and what your situation is. Some things that many mortgage companies will accept as financial hardship is divorce, job loss or disability.
Every mortgage company has different requirements and in order to stop house foreclosure, you will need to get the requirements from your bank.
A helpful tip: Fax or email all of the paperwork that they want all at once. They are busy and it is very likely that your information could get lost or misplaced if you fax or email your paperwork in separate batches to them. Also always reference your loan number on everything that you send to them.
About the Author
If you want to stop house foreclosure, you are going to need to work with your bank. If financial hardship is part of the picture for you, you are going to need to provide them with proof of that. Be prepared to work with them and get them whatever they need. Get more free foreclosure advice at http://www.Stopping-Home-Foreclosure.com/StopHouseForeclosure.html
Faces of Operation Restoration-Stop Foreclosure Now
When you receive a notice to the effect that foreclosure proceedings are starting, you can’t afford to waste any time responding.
Even though you may be feeling fear or panic at the prospect of losing your home, you need to force yourself to act right away. Every day that passes once you receive the foreclosure notice is a day closer to losing your home, so take action right away.
Because you only have limited time, here’s what to do.
1. Contact your mortgage holder and arrange a face to face meeting with someone who has authority to make decisions. Don’t discuss anything on the phone. When you have your meeting, be prepared to supply facts and figures to the loan officer. They will want to know if you are employed or not, how much you make, assets, and current expenses.
Your lender should be willing to at least discuss possible options with you. If you can show that there are resources available in the household, you may be able to get a modified loan. The loan could be an interest only loan, a change in the length of the mortgage term, or a reduced rate of interest. The goal of any of these options is to reduce the size of your payments so they become affordable.
2. If you have some equity in your house, you could try to arrange a loan equal to the equity value and then use this to pay down your arrears. This will get you out of your current situation but you will also need to renegotiate the terms of your mortgage so you are able to afford your payments.
3. You may be able to get a one time payment from the FHA Insurance fund to bring your mortgage up to date. You may qualify if you are between four and twelve months delinquent on your payments and will now be able to make your full mortgage payments.
The FHA fund is designed to be used by those who were hit with temporary situations that prevented them from maintaining their payments and have fallen behind.
4. Apply for assistance with the various government agencies. There are many people dealing with foreclosure. All levels of government recognize the immense problem, so a number of programs have been put in place to assist.
These programs include Project Lifeline and the Obama Mortgage Modification Program. Some of these government sponsored programs are for use over a short period of time. Other programs are designed for longer term assistance. Also check out the HUB website for where to get help.
5. A last resort kind of strategy may be to file suit against your creditors in court. There is such a huge backlog of cases waiting to be heard that this will give you some extra time to at least get your finances in order. An extreme measure like this should not be taken lightly. You should in fact, meet with an attorney who deals with foreclosure and other real estate transactions, before you actually file.
If you want to stop foreclosure fast, you need to take action right away. Don’t put it off and hope foreclosure won’t happen, because it will and then it will be too late to act.
