disability mortgage foreclosure
Disability mortgage foreclosure occurs when a homeowner who is on a fixed income is unable to make his or her monthly mortgage payment because of one reason or another. Usually this is due to the loss of work. The disability could be temporary or permanent. It could also mean that the homeowner is unable to work because of health reasons or other conditions. In any case, this causes the home to be at risk of being foreclosed upon by the lender. A person who is in need of disability benefits for one reason or another can apply for such a loan. When a homeowner applies for such a loan, the lender will verify the reason and whether or not the home meets the definition of disability. After it is verified, the lender will look at the borrower’s credit and will determine if the home is in an appropriate financial situation to be given a loan.
disability mortgage foreclosure process
The lender will require a number of documents from the homeowner. These include proof that he or she is receiving income from another source and that money is coming into the home to pay off debts. This also includes proof that money has been coming into the home from work. The lender will not give the home to the homeowner if the verification cannot be verified. This process is called a ‘Hardship Review.’
Once the lender has determined that the borrower is eligible for the loan, he will issue a pre-qualification letter. This letter will specify that the borrower is eligible for the mortgage and should have a copy of the Social Security Administration’s List of Impairments. This list is used to determine whether or not the home meets the definition of disability. If the lender’s pre-qualification is approved, he issues the first mortgage. This mortgage is used to pay all debts and expenses associated with the property.
After the home is purchased, the homeowner is considered fully disabled. This means that he or she cannot work in any capacity whatsoever and can not receive any type of public assistance. He or she must be able to work in order to be eligible to receive the loan. In order to qualify, the person must have a minimum amount of income after expenses are factored in and must have the ability to pay off the loan.
The lender will then present a final decision to the homeowner on whether or not he or she will qualify for the loan. If the lender does approve, a payment plan will be set up. The payments will be made to the lender until the entire cost of the house is paid off. However, if the payment plan is not completed in a reasonable period of time, then the homeowner may have to go back to the disability mortgage foreclosure process.
Related Article: Can You Foreclose On A Disabled Person