Just getting started on this journey Help!

[HardheadedDewey]

I am in the process of starting to apply for help from Flagstar. I have been late but now I cannot make this months payment or next few months in order to save the funds to pay for the second trip to florida for surgery to replace my jawbone lost to cancer treatment. Am currently out on disability which is 1/3 my normal pay. It will be another 4 to 6 months before I return to work if all works out as planned for a total of about 8 to 12 months out on disability. As I said I am planning on returning to work but will not be able to work the overtime that I have worked previously. At this point I am starting to write the hardship letter which I will complete and maybe post on Thursday. Do you folks have any guidance or suggestions? Also do you have opinions as to what type of help they may offer in this situation. Do you think they will refuse to help at this time because I have not gotten behind? How does this play out? Thank you all for your time

[Maurice Bedard]

You will have problems for two reaons- 1- you are not behind. If you have any savings, you won't qualify
2- They may consider your financial problem as temporary since you expect it to last less than a year.

If your income will be substantially the same after you return to work as it was when you first applied for the loan, you may not qualify. If you relied on the OT when you got the mtg, you might be able to claim the loss of OT as a hardship when you return to work. The bank may give you a temporary 'forbearance' and reduce your payment for several months, but you will eventually have to repay the difference. Same thing with a trial payment if you don't get a permanent mod. Any reduction in payments has to be repaid sooner or later. Even with HAMP trials, the difference between your regular and trial payments gets added to the loan balance. They could do that with a temporary forbearance too, once you return to work, add the missed payment amounts to the loan balance. Until you return to work, and can prove that your income is permanently reduced, you are going to have a problem. The banks don't like assuming things might happen in the future. They like evidence of what is going on right now.