Emergency Mortgage Assistance Program (EMAP) ...... Hardship Letter

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut NMLS #65149

As I mentioned in Emergency Mortgage Assistance Program (EMAP) ...... Eligibility Requirements, the first and most important requirement, in my opinion, that a Homeowner needs to meet is proof of a financial hardship that was created by circumstance that were out of their control.  The financial Hardship cannot be because of financial mismanagement, but can be eliminated through EMAP assistance within the maximum 60 month period.  Because the Hardship Requirement is so important I am writing this blog Emergency Mortgage Assistance Program (EMAP) ...... Hardship Letter specifically to address the Financial Hardship requirement and what the Financial Hardship Letter needs to address.

The two main reasons that the Emergency Mortgage Assistance Program (EMAP) will consider as a Financial Hardship is:

  • A Reduction of Income - the reduction can be for reasons such as
    • Unemployment - loss of a job, laid off
    • Reductions in the number of work hours would constitute a reduction in Income.
    • Underemployed - this would be if the Homeowner lost a job, but later found another job, but at a lower incomel, or had to take a job in a lower paying field
    • A Loss, Reduction, or Delay in the Receipt of:
      • Federal, State, or Municipal Benefits
      • Private Benefits such as:
        • Disability, or
        • Retirement
    • Death of a spouse or other family member that was on the mortgage, and contributing to the monthly payment.
  • An Increase in Expenses - the increase in expenses could be because of additional family responsibilities, like:
    • Significant increase in the mortgage payment
    • Unanticipated rise in housing expenses
    • Taking care of an elderly parent
    • Child Care
    • Divorce - loss of support payment, or due to alimony and child support
    • Medical Expenses
    • Disability

The above all constitute a legitimate reason for a Hardship.  What does not constitute a legitimate reason for a Hardship, is anything that would be seen as Financial Mismanagement, such as :

  • Increased credit card debt
  • Debt for Recreational purposes
  • Restaurant Debt
  • Hotel Debt
  • Incurred debt because of Vacation
  • Incurred debt because of Gambling
  • Incurred debt for Non essential items
  • Financial difficulties prior to there being a legitimate hardship
  • etc.

If the Emergency Mortgage Assistance Program (EMAP) ...... Hardship Letter, shows ANYTHING that would indicate that the Homeowner's financial problems are because of Financial Mismanagement, assistance will most likely be denied. 

The Emergency Mortgage Assistance Program (EMAP) ...... Hardship Letter, also needs to be very detailed.  The Hardship Letter cannot just be a quick couple of paragraphs, it needs to give specific detailed reasons for the Financial Hardship.

  • What caused the Hardship
  • What steps were taken to try rectify it
  • What other problems were created because of the initial Hardship

All this needs to be very detailed.  The Emergency Mortgage Assistance Program (EMAP) ...... Hardship Letter is not a time to take short cuts in describing and documenting the Financial Hardship.

The next and final blog in this series will be on how the Emergency Mortgage Assistance Program (EMAP) Level of Assistance is determined, and an example of how Emergency Mortgage Assistance Program (EMAP) assistance is calculated.

 

Other Blogs In This Series:

Emergency Mortgage Assistance Program (EMAP) ........ Introduction

Emergency Mortgage Assistance Program (EMAP) ...... Program Overview

Emergency Mortgage Assistance Program (EMAP) ...... Eligibility Requirements

Emergency Mortgage Assistance Program (EMAP) ...... Determining Amount Of Assistance

 

*************************************************************************************

 Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Lending / Financial
Location:
Connecticut
Groups:
Real Estate Rookie
What is New in Loan Products
Connecticut - What makes us GREAT
RealtorsĀ®
Mortgages
Tags:
emap hardship letter

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the umbrella to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
694,265
Gene Mundt
www.genemundt.com - 708.921.6331 - New Lenox, IL
Chicagoland Mortgage Lender - 37 yrs experience

George:  GREAT info contained within your post!  And definitely info that many still need.  I received another call about this program just today.  Lots of questions coming from those in need.  You addressed many of them .. thank you ...

Gene

Oct 24, 2012 12:46 PM #1
Ambassador
1,872,240
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

Gene glad that I was able to provide information for your that you were able to use.  Good luck with those that you are trying to help.

Oct 24, 2012 02:02 PM #2
Rainmaker
1,021,323
Nick T Pappas
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

George, I've worked with a couple of clients lately needing this information...I was able to give them the necessary info to draft their hardship letter, but I'll be printing this post off for future reference that I can hand to them giving proper credit of course...thanks...great job.

Oct 24, 2012 02:38 PM #3
Ambassador
1,872,240
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

Nick the Hardship Letter in my opinion is the most important part of the whole program, it pretty much sets the stage for everything else that follows.  The Hardship Letter needs to be strong and make a compeling case for the reason for the hardship.  The stronger the letter the better their chances.

Oct 24, 2012 03:12 PM #4
Rainmaker
1,089,995
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

George, justification of hardships are difficult for some homeowners to lay out...you've given them the framework to do it well.

Oct 24, 2012 06:37 PM #5
Rainmaker
1,452,230
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

George, such a great post for those homeowners feeling they have nowhere to go!      Great advice and congratulations on your Feature.

Oct 24, 2012 07:14 PM #6
Ambassador
1,555,711
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

George, hardships are very common right now, unfortunately, for a variety of reasons. This is an excellent guide for people that need to write but are uncertain on how to start

Oct 24, 2012 08:03 PM #7
Ambassador
1,096,337
Joni Staples
Berkshire Hathaway Home Services - Anderson Properties - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTORĀ®

George: Congratulations on this WELL DESERVED gold star! GREAT information!

Oct 24, 2012 08:21 PM #8
Ambassador
1,872,240
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

Ginny that was one of the things I wanted to do with this blog, and hopefully it will help those who need to put one together.

Joan there is not a lot of help out there for those that are about to lose their home, and this is a program that works.  Hopefully getting the word out will make more aware of it.

Oct 24, 2012 10:19 PM #9
Ambassador
1,872,240
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

Ed, like I said to Ginny that was one of my intents, and hopefully it helps.

Joni thank you :)

Oct 24, 2012 10:21 PM #10
Show All Comments
Ambassador
1,872,240

George Souto

Your Connecticut Mortgage Expert
Call Me With All Mortgage Questions
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cat to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: