Financial Hardship Assistance: Do I qualify?
A need for financial hardship assistance can arise at any time. A financial hardship is one where an individual’s inability to meet their financial obligation causes a situation where foreclosures or the repossession of property may take place. This hardship can be brought on by a catastrophic medial situation, loss of job or other financial calamity that occurs.
Qualifying for financial hardship assistance depends on a variety of factors. These include the type of financial hardship that is experienced, the availability of programs that are sponsored by the federal or state government, or private foundation and the level of financial duress that a person is in.
Federal and State Programs
The federal and state government steps in as a guarantor of debts in the most extreme situations or circumstances. This involvement on the government’s part serves a larger interest. An individual who loses a job and does not have other financial resources from which to rely on present a greater societal cost if intervention does not take place. This is because the reliance on unemployment compensation, as an example, is short-term and this could lead a person to move to a social transfer payment program is assistance is provided to relive some financial burdens.
The types of guarantees can include loan forgiveness, debt relief and loan modification programs. Each of these government programs are based on the level of need of the borrower and may require that the borrower meet certain qualifications for the assistance. A criteria for qualification may be that a home owner’s mortgage conform to the requirements of a Federal Home Loan Mortgage Association (Freddie Mac) or Federal National Mortgage Association (Fannie Mae) 15 or 30-year conforming loan.
Private foundations may have less rigid standards for qualifying than do the state or federal government. This flexibility is due in part to a foundation’s case-by-case examination and ability to allow for some exceptions when granting assistance, provided that such exceptions are keeping with the organization’s mission. Nevertheless, private foundations may still provide some demonstration of financial hardship or need for assistance as may be demonstrated by the receipt of unemployment compensation or an unpaid hospital bill of a certain amount.
Locate a Program for Requirements
An individual seeking to access a financial hardship assistance program that is either publicly or privately available should contact the program or an organization within their community in order to determine their qualification. The nature of assistance provided by these programs varies and it is only through a thorough examination of the programs requirements that a determination may be made about its applicability to the individual’s situation.