How to Apply for a Hardship Loan
In order to apply for a hardship loan, take all current financial data to compile a financial hardship letter that will explain the difficulties. Get a new loan or modify existing terms with help from a financial specialist in this free video on loans and money management.
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Hi, this is Matt McKillen, with Innovative Financial Group. The question posed to me today is how do you apply for a hardship loan? What we've been seeing in the last year or so is that there's a lot of homeowners that are distressed. They either have had some type of financial hardship; perhaps their property value has declined substantially, or they're on a loan that maybe has turned into an adjustable that they can no longer afford. Aside from originating loans, I also am a specialist in loan modifications, and what we do when we apply for a hardship loan is that we take all the current financial data for that borrower, maybe their pay stubs, W2's; we like to show a couple months' bank statements to show what type of assets they have. And then, very importantly is we work with our clients to have them put together what's called a financial hardship letter, which will explain to the lender of the bank exactly why they're having financial difficulties. We then package all of this information up, we do approciate, approach the bank, and then we just start to discussing with the bank, either the collections or loss mitigation department why we feel that this client needs to either get a new loan under better terms, or modify their existing one. Again, my name is Matt McKillen. I'm with Innovative Financial Group.