Is There Government Help to Stop Foreclosure?
The current mortgage crisis has countless homeowners facing the possible foreclosure. It was estimated that in April of 2008, 1 of 194 American homeowners had been issued a foreclosure filing. Is there government help to stop foreclosure? Many families that are facing foreclosure are asking this question.
While congress continues to debate about what to do with America’s mortgage crisis there is currently some government help to stop foreclosure.
HUD provides homeowners with referral resources and education. HUD services are provided on a sliding scale. HUD counseling may indeed prove to be helpful when the time comes to negotiate workout plans with your lender. HUD counselling will also educate you about your options and might be able to provide assistance if you suspect that your mortgage lender is not acting in good faith. HUD resources are current and they maintain an active list of government programs that will provide relief to anxious homeowners.
If you have been the unfortunate victim of a flood or other storm related or natural disaster, FEMA could possibly provide assistance with financial burdens that are related losses incurred as a result of the natural disaster. Obviously this situation will not apply to the vast majority of homeowners, but there are many homeowners that do qualify for this assistance and are not aware that it is available.
Federal Housing Administration (FHA)
Another agency that provides government help to stop foreclosure is The FHASecure Program. This program is in place to assist homeowners that have fallen behind on mortgage payments due to an interest only loans or an adjustable rate mortgage. This program will assist homeowners with refinancing their adjustable rate mortgages to fixed rate mortgages. The FHASecure program is operational due to the assistance of mortgage lenders that provide these new loans to troubled homeowners.
This program may not be for everyone. Homeowners that are already in a fixed rate loan due not qualify and those that are initially eligible will still have to go through the lenders qualification process. What this really means is that you will likely need to have reasonably good credit and have some equity in your home in order to be able to use FHASecure program.
Is there any more government help to stop foreclosure?
Aside from the above listed government programs, there are other ways that property owners that are facing foreclosure can get help qufrom their mortgage lender. This route the best solution and the most common for many homeowners. By communicating with your mortgage lender’s loss mitigation department and discussing your problems, you might be very surprised to discover that most lenders will help negotiate a plan that will enable you to bring your loan up to a current status and set more affordable payments.
Good communication and a proactive plan is the key when it comes to successfully avoiding foreclosure. If you know you are going to fall behind or soon as you do fall behind, get on the phone and create open lines of communication with your lender. If you are proactive, your lender can likely help you resolve and stop foreclosure using a variety of private resources they have available. Keep in mind that your lender really does not want to foreclose on your property any more that you want them to. Always start with your lender in the event that you do not qualify for government help to stop foreclosure.
Filed under: Stop Foreclosure
