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

 

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 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

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Topic:
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emap hardship letter

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Rainmaker
668,258
Gene Mundt
Mortgage Lender - Chicago/Chicagoland Mortgages
www.genemundt.com

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

October 24, 2012 12:46 PM
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George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

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.

October 24, 2012 02:02 PM
Rainmaker
972,865
Nick T Pappas
Madison & Huntsville Alabama Real Estate Resource
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL

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.

October 24, 2012 02:38 PM
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George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

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.

October 24, 2012 03:12 PM
Rainmaker
1,044,686
Ginny Gorman
Homes for Sale in North Kingstown RI and beyond
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate

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

October 24, 2012 06:37 PM
Rainmaker
1,354,297
Joan Cox
Denver Real Estate - Selling One Home at a Time
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373

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

October 24, 2012 07:14 PM
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1,488,313
Ed Silva
Central CT Real Estate Broker Serving all equally
RE/MAX Professionals, CT 203-206-0754

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

October 24, 2012 08:03 PM
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Joni Staples
Your Huntsville / Lake Livingston Area REALTORĀ®
Berkshire Hathaway Home Services - Anderson Properties

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

October 24, 2012 08:21 PM
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George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

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.

October 24, 2012 10:19 PM
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George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

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

Joni thank you :)

October 24, 2012 10:21 PM
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George Souto

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