photo by Jessica Smith and used with permission
You did all the right things and jumped into the home-ownership pull at the same time as everyone else.
However, unfortunately life hasn’t happened like you’d expected it to. There are a lot of reasons that your ability to pay has changed — could be job loss, reduction of hours, divorce, death, or just a toxic loan.
It has left you in a position where your monthly mortgage payment is more of your home’s income than you can truly afford. There are options for you, and the earlier you step to the plate and address the situation the more you have.
My first rule — NEVER, EVER, & I MEAN EVER — pay a someone to work with you on a loan modification for your home loan. Why? It is simple. You can do this yourself or if you don’t feel comfortable doing that there are numerous options available in Central Ohio for free. (Yep, FREE!)
You can pick-up the phone and call the mortgage company and speak with the “loan modification” department to discuss your situation. You are going to need to be prepared to provide them with a collection of information: (when you call you don’t have to have this all ready – but they will be asking you to send it in so having it ready will help you state your case better)
- Statement of Hardship. This is possibly the most-important piece of the equation. It is simply why are you in trouble? Be honest, specific, and give details. A good example would be: “My husband lost his job at Avesta on February 1 and has been unable to secure employment in our current market. I am a stay a home mom with three kids and we have $1,000 in available money before we are in extreme hardship.” This is your only chance to tell your story and prove to the mortgage holder that you need to be assisted.
- Household Budget. They are going to ask you a lot of questions about where your money is going. Be prepared to complete a monthly budget for your home – that shows where that money is going.
- Last Two Pay Stubs For Each Person. Pretty standard, they want to know what you are bringing in when you get paid. Don’t have pay stubs? Then write a statement that says why you don’t and sign it.
- Last Two Years Tax Returns. Again, the mortgage holder wants to know how your situation has changed. In 2006 you made $50,000 and in 2009 you made $15,000.
- Last Two Bank Statements. They want to make sure that you are in your current financial situation.
- Speak For Me Form (Optional). If you decide to short-sale the home or you have worked with a loan modification specialist who will be speaking with the bank, you’ll have to sign and allow your representative to speak with the bank on your behalf.
When you call be prepared to explain the situation and go into detail. Be honest and up-front. There is no benefit to you or the mortgage holder if you hide information. Get it on the table and work with them to get a better alternative. The bank doesn’t want to foreclose on your home, they don’t need the inventory or costs associated with it. Work with them and they’ll work with you (in theory).
Central Ohio HUD Approved Housing Counseling Agencies
| Company | Location | Phone | Fax |
|---|---|---|---|
| Consumer Credit Council Services | Multiple Locations | (800) 355-2227 | (614) 552-4800 |
| Columbus Housing Partnership | 526 E. Main St. Columbus |
(614) 221-8889 | (614) 221-8591 |
| Columbus Urban League | 788 Mt. Vernon Ave. Columbus |
(614) 257-6300 | (614) 372-2345 |
| Homes On The Hill | 12 S. Terrace Ave. Columbus |
(614) 275-4663 | (614) 275-3060 |
| Mid Ohio Regional Planning Commission | 111 Liberty St. #100 Columbus |
(614) 233-4180 | (614) 228-1904 |
| NID Housing Counseling Agency | 4449 Easton Way Columbus |
(614) 934-1237 | (614) 934-1261 |
| Ohio Housing Finance Agency | 57 E. Main St. Columbus |
(614) 387-1662 | (614) 995-0487 |
A complete list of Ohio agency’s is available on the HUD Web site.
