Published by Arizona Foreclosure Prevention Task as adapted from NeighborWorks-
A financial hardship results from an involuntary reduction in income or an unavoidable increase in expenses.
Common Involuntary Reductions of Income:
Unemployment
Mandatory reduced hours or hourly wage
Under employment after loss of previous job
Death of a borrower
Decline in business earnings if self employed
Permanent or short term disability
Serious illness of a household member
Divorce
Unavoidable Increases in Expenses
Major medical expenses
Disaster
Urgent property repairs
Increase in child care expenses
Mortgage loan and payment changes
A hardship letter is a brief and to the point overview of the homeowner’s situation. It is ideally only four paragraphs and no more than two pages.
The letter must include:
Homeowner’s name(s), address and phone number(s)
Loan number(s)
The first paragraph should include:
Other relevant details about the loan or the property, such as the number of months delinquent, property value, etc.
The second paragraph should include:
A matter of fact description of what caused the default -
Avoid blaming others for what occurred
The third paragraph should provide an overview of the homeowner’s financial situation:
Actions the homeowner has taken to reduce expenses and increase income
Financial counseling or other steps the homeowners have taken to resolve the situation
The amount of money the homeowner has saved to pay towards the delinquency
The fourth paragraph should briefly outline the desire to prevent foreclosure.
Reasons why the homeowners believe they will be successful
Demonstration of their commitment to see it through to its end
The last paragraph should indicate the preferred times and methods for contacting the homeowner (and their HUD approved housing counseling agency, if applicable).
Documents to attach:
Financial statement
Income and expense verifications
Documents that support or verify the hardship
Verification for anticipated changes to income and expenses
Other documents requested by servicer or counselor
The Arizona Foreclosure Prevention Task Force has put out information for homeowners facing foreclosure.
They provide free services and a Arizona Foreclosure Prevention hotline at 1-877-448-1211. There is also an informative website www.azForeclosurePrevention.org
Veracity Real Estate Group in Ahwatukee works hard to help homeowners facing foreclosure. Their agents are trained in the entire short sale process as well as AZ real estate law and how to best assist clients. Their agents are licensed Real Estate agents and you can rest assured will not only give you correct information but also listen and understand during the entire process. Call Dawn today at 480-540-8100 to schedule an appointment with Veracity Real Estate Group's short sale team.
www.VeracityRealEstateGroup.com
480-540-8100
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