Conditions that qualify as a hardship for loan modifications:
When applying for a loan modification, one of the main requirements will be a financial hardship letter.
This letter serves as an explanation to the lender as to why the borrower can no longer afford to maintain the monthly payments. It also covers what the lender has done to try and solve the problem prior to asking for the modification.
In the past few years, the number of acceptable reasons to claim a financial hardship have declined so we felt it was important to take a few minutes to go over the ones that are still available.
Eight reasons that are still considered a hardship in Florida for 2014:
- Loss of Job (now has new job)
- include copies of W-2's and pay stubs are used for verification.
- Reduced of Income
- include copies of W-2's and pay stubs are used for verification.
- Job Relocation
- include copies of W-2's and pay stubs are used for verification.
- Death of Spouse or co-Borrower
- a copy of the death certificate is used for verification
- Divorce (spouse has been refinanced off note)
- a copy of the divorce decree or paperwork is used for verification.
- Military Duty
- may apply if the following conditions are met:
• You've received Permanent Change of Station (PCS) orders
• You're in active duty service (or just left)
• You (or your spouse) have been injured in active duty
- Long Term or Permanent Disability
- medical documentation is used for verification
- Damage to Property (natural disaster or unnatural)
- insurance claim paperwork and estimates are used for verification
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Although it might not appear this way on first glance, the above reasons a homeowner may qualify for a loan modification all have one key factor in common - every one of them can be verified with some type of legitimate paperwork.
The hardship letter is one of the most important components in the loan modification process and it is essential that they are completed following some general guidelines. We've put together a page on How to write a Hardship Letter for Loan Modifications that we recommend to help understand that part of the process and what's required.
When you are able to show the lender and federal agencies documented proof of your hardship, it greatly improves your chances of being approved for the loan modification.
The typical timeframe for determining whether or not eligibility requirements are met, supporting documentation is gathered, and the submission of the application can take a few weeks depending on whether or not certain paperwork must first be obtained.
Hiring a loan modification attorney can go even further into helping streamline the process. Here at Fernandez Law Group, our Tampa attorneys have all of the required forms and documents a borrower could need from for any lender.
We can help ensure that you meet all eligibility requirements and the necessary information is properly submitted. And we work directly with the lender to ensure your best interests are represented while fighting to get you the best possible rates, terms and conditions.
Call or Text us today at 813-489-3222 for a FREE consultation.
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Content authored by 
Gaston Fernandez
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