If you are struggling with an overwhelming mortgage payment and you apply for assistance, it’s without question you will be required to provide a hardship letter. There is a lot of misinformation out there about HARP (refinancing), HAMP (loan modification) and HAFA (short sale) all government programs created to provide mortgage relief.
The Making Home Affordable © (MHA) Program is a critical part of the Obama Administration’s broad strategy to help homeowners avoid foreclosure, stabilize the country’s housing market, and improve the nation’s economy.
Property owners can lower their monthly mortgage payments and get into more stable loans at today’s low rates. And for those homeowners for whom homeownership is no longer affordable or desirable, the program can provide a way out which avoids foreclosure. Additionally, in an effort to be responsive to the needs of today’s homeowners, there are also options for unemployed homeowners and homeowners who owe more than their homes are worth.
The confusion is knowing what program is best for your personal situation. When you work with a trained Certified Distressed Property Expert, aka CDPE, they can help you determine which program is best and evaluate what the qualifying factors are for each program. If it’s determined that a short sale is the best option, your CDPE will help you write your hardship letter, compile all the required documents and notify your lender that you’re selling short.
A well written hardship letter includes a time line and a clear explanation of what has changed with your circumstances. Lenders receive thousands of packages per day, a hardship letter that makes it easy to understand what transpired helps expedite the process of loan modifications as well as a short sale.
The graphic gives examples of acceptable hardships by lenders across the USA. These hardship examples apply to loan modifications, short sales and Deed in Lieu of foreclosure. If you have fallen behind with your mortgage payments, your hardship letter will provide the explanation of what caused the problem.