When we launched the Ark Mortgage Assistance Program (AMAP), I really didn’t know how effective it would be. It feels great to know that we’ve helped so many people meet important goals.
Congratulations to you if you have received approval on a loan modification!
When you sign up for your mortgage, you never think what would happen if you lost your job. But things like this do happen, and it can be nerve-wracking. Don’t add to your stress. Talk to your mortgage lender right away about unemployment forbearance.
A reverse mortgage can be a great financial tool for people who have built equity in their home. According to the U.S. Department of Housing and Urban Development (HUD), a reverse mortgage “can give older Americans greater financial security. Many seniors use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more.”
I have handled many, many negotiations with mortgage lenders—and, I confess, sometimes it feels like lenders go out of their way to make the process difficult. But I know it’s rarely intentional.
When your mortgage provider seems to be stalling on a loan modification, sometimes you just have to ask the right question. But knowing the right question to ask is rarely obvious.
I can’t emphasize enough how important it is to know your goals when you decide you want a loan modification from your mortgage lender. Goals are one of the first things I talk about with anyone who calls Ark Law Group to discuss Ark’s Mortgage Assistance Program (AMAP).
Lenders consider five types of hardship to be valid when they are asked to approve a short sale:
- Curtailment of income – such as unemployment or loss of a business
- Divorce (or abandonment)
- Illness that leads to insupportable medical bills
- Death of one of the borrowers
- Excessive expenses (obviously, this is the least persuasive reason – but it may sometimes be used)
Unlike other investors, Federal Housing Administration (FHA) has a two-tiered approval process. First, the lender reviews and declines the borrower for home retention options and approves them for participation in a short sale. Second, the lender reviews the offer in line with their appraisal for final approval.
After moving out to care for her ailing grandmother, Susan, a full-time student, could no longer afford the mortgage payments on her Renton, WA, condo.
Murray and Dell had planned to live in their home forever. But in 2007 when the financial crisis wreaked havoc on Murray’s business, they could no longer afford their mortgage payments. The value of their home had fallen too, so selling it was not a viable option.
In 2007, Trevor and Eloise purchased a luxury home in Kirkland, WA. When home prices crashed, and their incomes dropped as well, they could no longer afford their expensive mortgage.