How To Put Together A Financial Hardship Package
Many homeowners are finding that their lender or bank is asking for a financial hardship package when they are contacting them about their loan to start the loan modification or short sale process. Most all lenders and banks require more than just a financial hardship letter, in fact, that is just one item that they are going to want to see. The reason the items are important is because the documentation helps the bank or lender to establish hardship on the part of the homeowner. The required items that are needed will typically vary slightly among banks and lenders.
The very first step is to contact your lender of bank and ask to speak with the loss mitigation department. Next, ask them what the requirements are and what needs to be included to submit a financial hardship package. You will also want to ask for a fax number, email address, or physical mailing address to the department where the package needs to go.
Typically the first item needed is a financial hardship letter. This is a couple of paragraphs written by the homeowner about the financial change that has occurred that has caused the homeowner to be unable to continue to pay the current monthly mortgage payment to the bank or lender.
Other items that are usually required but can vary are:
- Two of the most recent monthly bank statements
- Two of the most recent pay stubs
- Two last years’ of W2s
- Last two years tax returns
- Any repairs currently needed to the house
After you have successfully packed the necessary items together send them over to the lender or bank. Then next step will be to receive a reply from them stating they have received your package and you will usually be assigned a contact person or case manager to work with. This is the person to contact and start your negotiations for a short sale or loan modification.
May 5th, 2009 at 11:22 pm
Hi, good post. I have been wondering about this topic,so thanks for posting. I’ll probably be coming back to your site. Keep up the good posts