Where to Get Foreclosure Help
Depending on the nature of your mortgage issues, there are numerous options available to help you keep your home. The services mentioned here cover most situations including unemployment. There are also free professional services which can assist with uncommon mortgage issues that aren’t outlined below, see non-profit assistance.
Bank Assistance Programs
To start with, it is a good idea to speak to your bank, preferably before the mortgage goes into arrears to see whether they can offer assistance. Remember, the bank does not want to foreclose on the property if they can avoid it – it does not make sense from a business perspective.
There are many ways that banks can do this – they can help refinance the home to reduce the repayments. You may be able to renegotiate the interest rate paid or negotiate a temporary reduction in payments.
It is best to be upfront with your bankers about your financial situation in this process. Should they offer assistance and you are unable to adhere to the negotiated terms, they will be a lot less forgiving.
Many of the big banks and lenders directly provide loan modifications, principal reduction, interest rate reductions and short sales in some instances.
If you are battling with repayments and cannot refinance in a traditional manner, there are HUD programs to assist making the installments more affordable. This could mean refinancing over a longer period or a reduction in the principle amount of the debt.
The housing market took a big dive a few years ago and consequently many people owe more on their mortgages than their homes are now worth. This is problematic because you are unlikely to be able to get traditional refinancing and could end up with a short fall if you sell.
Programs aimed at solving this problem look to reduce the principle debt or to help pay costs associated with selling the home short. For detailed information underwater mortgages visit here.
Assistance for the Unemployed
If you have just lost your job, do not panic – several programs can assist you in keeping your home. In some cases, this will mean a temporary reduction or suspension of mortgage payments so that you have a chance to find a new job.
In other cases, this will mean that the bank needs to be patient with you for a period of between 4 and 12 months.
Should you qualify, you may also get assistance in refinancing your home at a lower installment.
For more information visit the Home Affordable Unemployment Program (UP) or HUD.GOV
There are several non-profit organizations that will try to assist you if you are battling to make ends meet. This is not always in the form of financial assistance as these charities do not always have the cash to help in this manner but they are generally able to put you in touch with people and organizations that might be able to help you. Some Community Action Agencies work from or closely with different non-profits and they can provide professional assistance.