What Is Considered a Hardship for a Loan Modification?

If you need to lower your mortgage payments and are considering seeking a hardship modification, you need to be aware of what constitutes a hardship for this purpose. Among the qualifying situations are a death in the family, divorce, unemployment, serious illness, losses due to natural disasters and having to provide care for elderly relatives.

Function

You can request a loan modification from your lender if you meet certain criteria. A modification will lower your mortgage payment and decrease the interest.

Benefits

A loan modification should enable you to make your payments more comfortably. Modifications are designed to help relieve the stress and strain from your budget.

Affidavit

To get a modification, you need to fill out a hardship affidavit. This form will ask you a number of questions concerning your hardship.

Considerations

You will need to provide information about your assets and liabilities. This will help determine whether you qualify for a modification.

Getting Assistance

When you need a loan modification, contact your lender or a certified credit counselor for help.

References

• MakingHomeAffordable.gov: Help for America's Homeowners
• Neighborhood Assistance Corporation of America: Help for Homeowners