Do You Need Mortgage Help
Below are two of the largest mortgage assistance programs in the US. These services cover most scenarios that home owners may be experiencing when it comes to mortgage issues.
The Department of Housing and Urban Development (HUD)
There are several mortgage help programs run by HUD in order to assist home owners. Here is a run-down of the most popular ones.
Getting a Lower Repayment Plan
- The Home Affordable Modification program (HAMP) assists by bringing your mortgage payments back in line with 31% of your gross salary.
- The Principle Reduction Alternative aids homeowners who owe more than their homes are actually worth by negotiating the reduction of the principle debt with the holders of the mortgage.
- The Second Lien Modification Program could help if you have already modified your primary mortgage in terms of the HAMP option and have a second mortgage in place on the same property. It can assist you in getting the second mortgage modified or in getting a reduction thereof.
- Home Affordable Refinance Program can help if you are still up to date in terms of mortgage payments but are not able to get the home refinanced because of a declined value. The aim here is to make you new payments more affordable.
- Home Affordable Unemployment Plan can help to get a reduction in repayments for at least a year to allow you time to get a new job.
- The FHA has also implemented legislation that allows eligible mortgage holders a forbearance period of between four to twelve months when they become unemployed.
- The Home Affordable Foreclosure Alternatives will assist you if you cannot meet your mortgage payments and wish to move to a home that is more within your price range.
- Should you home have already been foreclosed on and sold, there is still a redemption period during which you can redeem your home as long as you pay all the outstanding dent and any costs that the mortgager incurred due to the foreclosure.
If you feel that you may be in danger of foreclosure, you need to contact the local National Servicing Center. They are there to assist you if you are about to default on your mortgage or if you have already defaulted. They will attempt to find a solution that allows you to keep your home at a more affordable installment rate or to mitigate losses suffered should you not be able to keep the house. Visit our foreclosure page for more detail.
Freddie Mac Funding Programs
You can also gain access to federally funded Freddie Mac programs through state Housing Finance Agencies (HFA). The different programs provide assistance that cover most scenerios including:
- Unemployment Mortgage Assistance Program
- Mortgage Reinstatement Program
- Modification Assistance Program
- Transition Assistance Program
These programs can help you get back on top of your mortgage repayments by:
- Assistance in meeting your mortgage payments in part or in full.
- Provide the funds needed to bring the mortgage payments back up to date.
- Programs that assist in making repayments more affordable or by decreasing the principle amount owed.
- Programs that can help you to move to something that is more affordable by providing funds for short sales or relocation expenses.
You will need to apply at your local HFA in order to see whether you qualify for assistance. You will need to complete an application and provide full details of income, expenses, mortgage holder, etc. Check out the HFA website if you are interested in learning more.