How to Apply for Government Bailout Money
Providing assistance to American families who were impacted by the recent recession was a key part of President Obama's platform when he campaigned in 2008. Since taking office, he has enacted several policies that make it easier for families to request government aid. Perhaps the most well-known is his federal bailout program, which provides assistance to families that have defaulted on loans and are on the brink of being evicted and having their homes repossessed.
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Instructions
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You can easily finish the online questionnaire in a few minutes. Perform the U.S. Treasury's self-evaluation. The link can be found below, in the Resources section. The Treasury has compiled a brief questionnaire, with several easy-to-answer questions about your mortgage. This will give you a preliminary idea of whether or not you qualify for government aid, and what kinds of aid you are eligible to receive.
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Talk to your lender or lending representative. It can be intimidating to place a call or send an e-mail admitting that you're no longer able to make adequate loan payments, but in the end, open communication can only benefit you. Your lender has a vested interest in continuing to receive payments toward the loan, even small ones, and will most likely be happy to work with you toward an affordable solution. In addition, your lender will have access to the most up-to-date information on federal funding in your state, as well as how to apply.
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Have all your financial records for the last two years on hand to complete these forms. Prepare your documentation. You will need a financial hardship letter, proof of income, proof of any other circumstances that have affected your ability to pay (such as loss of job, loss of income or a medical condition), the Request for Modification and Affidavit, and the Tax Authorization Form (both available from the Treasury website linked to below). The RMA helps you provide your mortgage lender with necessary details about your financial situation, and the tax form gives them permission to contact the IRS about your previous tax returns if necessary.
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Submit these completed forms to your mortgage lender. Let the lender know that you are having difficulty making your payments, but that you want to continue to make payments on your mortgage and avoid repossession. Let them know that you plan on taking advantage of federal programs to help you do so. Your lender will manage the process from there.
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Tips & Warnings
If you are not eligible for government bailout assistance, then you can still ask your bank to renegotiate your terms.
Federal bailout money and venture loans are not available for small-business owners at this time.
References
Resources
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