Hardship Loan and Foreclosure Statement

[Guest kdddk14]

The loan policy requires the reason to be the statutory hardship provisions. A participant took a loan using a foreclosure notice. The same participant would like to refinance her loan and sent a statement showing overdue payments but not an actual foreclosure notice. The reasoning is to be preemptive because a foreclosure notice will be forthcoming next month.

In my opinion I think she would have to wait until she receives the next official notice but wanted to check on other opinions.

[BG5150]

The loan policy may state that loans may only be granted for reasons that fall under the safe harbor hardship situations. But does it say there is the same burden of proof needed?

[Guest kdddk14]

Yes, the same burden of proof applies.

[masteff]

Tell the participant to call the lender and request a letter. Lenders are more than happy to send them if it means they'll get paid.

But double check the statement... don't just look for "foreclosure notice" in huge letters, look for "if you fail to bring this current, proceedings will begin against you". I've posted before that my opinion it's sufficient for there to be a threat of imminent foreclosure for it to be preventable.