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the (HAMP) program is $522" - DSnews.com

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The Importance of a Hardship


Notice that the name of this article is not "The Importance of a Hardship Letter".  Instead, it is, "The Importance of a Hardship".  What this means is that although the letter is important, it is the actual Hardship that qualifies someone to be considered for a loan modification or for some type of help from their lender.  And the reason for this, whoever you owe money to, wants to know why you can't pay them.  If the reason is verifiable and is out of your control, as it is for so many people right now, then they may be willing to help you.  And this doesn't only go for you mortgage.  It goes for your credit cards, your car loan, your student loans, almost any institution you owe money to has a program for people who are experiencing trouble. 

For credit cards, they have Hardship insurance where you pay extra every month so that if you experience hardship, they will make the payments for you for a few months.  Check to see if you have been enrolled in this program by calling your credit card provider.  They also have program where they will suspend your payment for a month or more because of a hardship.  You can find out all of this by communicating with them.

For car loans, they also have forbearance plans.  For most car lenders, it is very easy to get a car loan modification.  Simply call in and explain your situation.  Tell them you have had a hardship, tell them what it is, and tell them you do not want to fall behind.  Ask them what they can do to help you out for a few months during this difficult situation.  Many times they will work with you.

In a mortgage loan modification, the hardship is also very important.  The hardship is the reason the bank works with you in addition to their own financial motivations.  Make sure you explain the hardship in a direct and detailed manner both in the written letter and verbally.  Your loan modification may depend on it.

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