One of the factors which determine eligibility for assistance under newly approved government programs, is whether or not your circumstances have changed. If changing circumstances have caused a hardship - making it difficult to for you to make your mortgage payment each month - you should look into these plans. Here are 7 situations which may enable you to modify (or even refinance) your loan.
Hardship Reason #1: A Job Loss Put You Behind on Your Payments
Many people, through no fault of their own, have been losing jobs. It's obvious to everyone that losing a job can impact that persons ability to pay. Unfortunately, most of us don't have an emergency fund which can cover 3-6 months of living expenses. In fact, most experience problems within 30 days of an interruption in cash flow.
Hardship Reason #2: Reduced Income on the Job
This reason is similar to the first one. Maybe you didn't lose your job, but your income has been reduced through a cut back in hours or production. Again, changes in the world economy is having "ripple waves" across a broad range of industries.
Hardship Reason #3: Divorce
Have you heard about the increase in couples who have put off getting a divorce because of it's economic impact? If you've recently gone through a divorce you know from experience the effect that's having on your finances. Your lenders know it too. They see it all the time.
Hardship Reason #4: Medical Emergencies
The cost of health care has probably wiped out more peoples life savings than any other single cause. And it can happen no matter what the economy is doing.
Hardship Reason #5: A Death in the Family
Obviously when a wage earner dies it will impact household finances. (Hopefully you're prepared for that possibility with adequate life insurance).
Hardship Reason #6: A Huge Sudden Jump In Your Monthly Payment When An Adjustable Rate Mortgage (ARM) Increases
There's a lot of finger pointing going on in Washington over this one. Doesn't matter. If you're caught in this situation it can make you eligible for assistance. Enough said.
Hardship Reason #7: Any Combination of Circumstances or Temporary Setbacks That Have Caused You To Fall Behind
One thing everyone understands -- "life happens". The key here is to be able to demonstrate that even though you've fallen behind on your mortgage it was caused by temporary events which have now been overcome or solved.
In Closing ...
I hope the information you've found in this article has helped you to assess where you stand, and given you ideas on how to address your situation. As Americans we can get through this together. We have to. Remember - you can do it. And you're not alone.
