What Is Foreclosure Prevention Counseling
Home ownership is not just the bedrock of the traditional American dream once achieved, the treasured dwelling place also can become a store of wealth. For many, a house is a familys more valuable possession. Additionally, keeping families in their homes preserves communities, helps neighborhoods prosper, encourages rising property values, and increases the tax base.
The former is the reason homeowners must dig in when foreclosure threatens. The latter is a key reason lawmakers from county commissions to Congress heed at least one lesson from the Great Recession a decade ago: Government has an interest in preventing avoidable foreclosures.
Washingtons Making Home Affordable plan helps responsible homeowners obtain affordable refinancing or loan modifications that allow them to remain in their homes.
Get started by finding a legitimate housing or financial counselor who can help work through your problems:
- The U.S. Department of Housing and Urban Development can help you find a counselor. Call 569-4287 or 483-1515, or visit the agencys website.
- HOPE NOW, a cooperative effort of mortgage counselors and lenders to help homeowners, offers the Homeowners HOPE Hotline. Reach a nonprofit, HUD-approved counselor at 995-HOPE.
Circumspection In Choosing From Among Loan Modification Services
Generally, there are two types of loan modification companies: the legit and the scam. There are also two general types of consumers: the canny and the gullible. How you choose the firm that will help you re-work your loan will mainly tell what type of consumer you are. Get to know how these scams are pulled off by con artists to avoid being double-crossed by loan modification services that are actually scams.
Short Sale Information: You May Be Obliged To Pay For Deficiency Balance
There is a way to keep your credit rating intact. This is by paying for the deficiency balance left after short selling, the deficit between the mortgage balance and the selling price. However, if you cannot settle this, your credit record may have to brace for another blow as your lender can file a judgment in an effort to collect the full or a portion of the deficit. This will be logged on your record and may possibly pull down your rating even lower. This record will stay on your credit record for seven years. Having this in your file may give you a hard time getting the credit approval of other creditors.
Before going for a short sale, gather all the short sale information you can get to aid you in weighing your options and help you prepare for what to expect.
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Mortgage Assistance Options To Help You Avoid Foreclosure
If youre struggling financially, you make be able to get mortgage assistance to help prevent or stop your home from ending up in foreclosure.
Life happens, finances change, and what was once an affordable mortgage payment may no longer be feasible. When that happens, it can be helpful to look for mortgage relief programs that can help fill in the financial gaps and/or offer targeted solutions that ensure that you are able to stay in your home.
The specific mortgage assistance programs that are available to you will depend on where you live , as well as whether or not you qualify. Weve put together this quick overview of what your options might be, and we also recommend reaching out to Department of Housings Homeowner Help line at 995-HOPE , where you will be connected with someone who will be able to assist you in navigating your unique financial situation.
Fannie Maes Homepath Program
The Fannie Mae HomePath program allows buyers to buy Fannie Mae-owned homes and offers simpler mortgage requirements than is offered by a traditional loan.
There are two distinct programs available through HomePath:
The HomePath Mortgage it resembles a traditional home loan offered by banks. It is usually for buyers who are acquiring the foreclosed property to be their primary residence .
The HomePath Renovation Mortgage it is aimed at buyers buying a home in need of repair such as the real estate investors who are into the fix-and-flip business.
Fannie Mae Homepath program will also be launching a new home loan program called HomeReady. It will be available to low-income borrowers as selected by the U.S. Census Bureau.
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Haven’t Missed A House Payment Yet But Afraid You Might
Has your financial situation changed due to a mortgage payment increase, loss of job, divorce, medical expenses, increase in taxes or other reasons?
- Is your credit card debt becoming unmanageable?
- Are you using your credit cards to buy groceries?
- Is it becoming difficult to pay all your monthly bills on time?
If its becoming harder to make your house payment each month:
What Should I Do If Im Having Trouble Paying My Mortgage
If youre having difficulty making your mortgage payment, contact your loan servicer right away. This is your chance to find a solution that might work for your scenario.
If youre nervous about contacting your servicer, or if youd like our help and advice, please contact a VA loan technician at . You can also email us at .
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S In Buying A Short Sale Home
1. Research before you submit an offer to purchase. To guide you in coming up with an appropriate price, ask questions such as: who is in title how much is the mortgage balance has a foreclosure notice been file already. It is also important that you know if there is a second mortgage as this can also affect whether a short sale can proceed. Ask also if you can reserve the right to inspection. Most short sale homes are sold on an as-is basis, which means that you are not protected. Protect yourself by checking out the property.
2. Hire a competent real estate agent with solid experience in short sales. Your agent can help you with the research above and in contacting and coordinating with the lender.
3.Get in touch with the loss mitigation department of the mortgage provider and furnish and Authorization Release Information form signed by the seller. You will know about your chances of buying the property from this department so take note of names and numbers to make your follow up.
4. Submit your offer, the required documentation and a copy of your earnest money deposit. If you qualified for a pre approved loan, also submit a proof of this.
5. Wait. In the first few months after you proffered your bid, expect that even if you made the highest bid, the bank may not consent a short sale. They would buy time waiting for a higher offer. This delaying tactic is what stretches the short sale process to take several months or even over a year.
Foreclosure Help For Veterans
Seeking foreclosure help in Nationwide, OK can be especially easy for veterans. In addition to the government programs offered above, veterans can seek help from the U.S. Department of Veterans Affairs . VA not only offers ample benefits, news, and careers for active and retired servicemen and women, it provides a plethora of resources designed to keep veterans in their homes.
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Iowa Legislature Approves Second Redistricting Map
The total disbursement of $220,000 so far includes the approval of 126 of 513 applications residents submitted through the program since it reopened March 29, Iowa Finance Authority Communications Director Ashley Jared told The Center Square in an email. The agencys disbursements in 2020 assisted more than 800 households to avoid foreclosure.
The Governor allocated approximately $2 million in CARES Act funds to keep this program available to homeowners, Jared said. It will remain available until the funds are exhausted or the new Federal Housing Assistance Fund Program opens for applications.
To be eligible, homeowners need to be at risk of foreclosure due to a COVID-19 related loss of income that occurred on or since March 13, 2020. They must have household income no greater than 80% of the area median income. Eligible households can receive mortgage assistance of up to four months or $3,600, beginning with the April 1, 2020, mortgage payment.
Government-based mortgages, which were not eligible for assistance when the agency reopened, are now included, Jared said.
Weve since opened our eligibility to include this mortgage type and are taking a second look at those applications now, so this number of households assisted through the program is expected to climb in the coming weeks, Jared said.
The Home Affordable Foreclosure Program
This is a deed-in-lieu foreclosure or a short sale. Its main benefit is that as a homeowner, you will not be held responsible anymore for the difference between the amount the home sells for and the amount owed on the mortgage. As a homeowner, you will also receive $3,000 for relocation assistance upon a successful deed-in-lieu or short sale. The short sale agreement allows the homeowner or borrower a minimum of 120 days I which to sell the home. Upon a successful sale, the mortgage lender should fully release the borrower of any claims and debt against the home.
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Government Help To Stop Foreclosure If You Think You Will Get Help Think Again
By | Submitted On October 27, 2008
Many homeowners facing foreclosure are seeking Government help to stop foreclosure, but will any of these available programs really help the people who need help the most? This is a question that many of my subscribers have been asking me lately.
We found out last week that we are officially in a recession. I wondered who really needed to hear that to now that we have been in a recession for a very long time. Job loses keep coming by the millions on the other hand, over 78,000 people lost their home to foreclosure last month .
This numbers are unbelievable. To me, it is just outrageous. And it is likely to get even worst than that, as more people loose their job, usually their mortgage payments become unaffordable as well. And there is not really a Government help to stop foreclosure program that really works for the people who are really in trouble
There are some programs out there like the new Fannie Mead and Freddie Mac that would adjust a new mortgage payment to 31% of your income, unfortunately, there are so many requirements that the program is just currently helping less that 1% of the home owners facing foreclosure today.
Same thing happens with the New Housing Rescue law Program. This program has so many requirements and so many strings attached, that it looks like a very bad joke. If this is what they call a Government help to stop foreclosure program, we are doomed.
State And Local Government Programs That Provide Mortgage Assistance And Stop Foreclosures
Many states and local governments have created assistance programs to help their residents with paying and/or refinancing mortgages in an effort to reduce and stop foreclosures. The type of help provided will vary by state, however it will usually include access to new mortgage loans, help with refinancing an existing mortgage, free counseling, grants, mediation, and other forms of free financial aid.
Some states have also put into place programs to postpone or slowdown the foreclosure process, or foreclosure moratoriums. Homeowners will usually have other resources available to them, depending on where they live. Select your state below to see what mortgage and foreclosure assistance programs they offer.
What Your Loan Servicer Must Do If You Request Forbearance
If you’re having trouble making payments on your federally backed mortgage because of the COVID-19 pandemic, contact your loan servicer before September 30, 2021. Your loan servicer must:
Defer or reduce your payments for 180 days if you contact them to make arrangements
Give you another 180 days of mortgage relief at your request
Offer options for how you can make up the deferred or reduced payments. They will discuss these options with you at the end of your forbearance period.
Government Help To Prevent Foreclosure
Even if you’re overwhelmed by your debts, foreclosure isn’t inevitable. The federal government’s Making Home Affordable program offers help for homeowners struggling to keep up with their mortgage payments, and for those who’ve already fallen behind. Even with federal help, some homeowners may not be able to escape foreclosure–but others may find the government has thrown them the lifeline they need.
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Cracking Scams Cloaked As Loan Modification Services
Pseudo-Foreclosure Consultants. Be wary when dealing with some people who call themselves as foreclosure consultants but are actually charlatans, purveying ostensible services and programs to help financially distressed homeowners avoid foreclosure, but are in reality no more than tricks to bilk you of your limited funds. These snake oil salesmen usually lurk in the Internet waiting for their unsuspecting prey to voluntarily come to them. Homeowners seeking loan modification services are often easy targets. They operate simply by exacting substantial amount from their victims to cover for their services. However, after the agreement has been signed and the payment pocketed, the agency virtually does nothing, or worse suddenly disappears. As a result, you lose your home. Naturally, these swindlers have no plans of reimbursing you if your house gets auctioned. Complaints about these schemes swarm the State Attorney Generals office.
Expensive Loan Modification Seminars Which Can Cost You Your Home. One more variation of the fraud is by plainly exacting exorbitant fees for loan modification seminars where homeowners are required to attend. These seminars are said to help in bargaining for more beneficial loan terms. If you do not attend such events, the scheming company will not do anything to help you save your home, and will even hold you responsible for losing your property.
Financial Assistance And Advice From States
States also have emergencyfinancial aid programs for paying numerous other housing expenses, including electric bills, storage costs, relocations, and property taxes to name but a few. Many of these programs are offered in partnership with non-profits, such as a community action agency. Find additional assistance programs, including those focused on foreclosure prevention, offered by your state throughout this site. There can also be local charities or non-profits that use government grants to provide homeowners assistance with their mortgage payments. Find more details on state government financial assistance.
When reviewing the programs available in your state, homeowners need to inquire into loan modifications. Many state and federal government programs exist that can modify an existing home loan. You will often be working with a counselor or mediator throughout the process. The professional can be an effective tool in negotiating the best favorable terms. With a mortgage modification, it is possible that a homeowner can receive:
- a lower interest rate
- some or all late fees and charges may be waived or reduced
- your interest rate may be changed from an adjustable rate loan to a fixed rate
- the months or years the homeowner has to repay the loan may be be lengthened
- total loan principal may be reduced.
- your second mortgage or equity loan could be waived.
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How Can I Avoid Foreclosure
There are 6 general ways you can try to avoid a foreclosure. Our VA loan technicians can help you figure out which option is best for you. Contact a VA loan technician at .
These are your options for trying to avoid foreclosure:
Repayment plan: If youve missed a few mortgage payments, this plan lets you go back to making your regular payments, with an added amount each month to cover the ones youve missed.
Special forbearance: This plan gives you some extra time to repay the missed mortgage payments.
Loan modification: Sometimes you need a fresh start. This plan lets you add the missed mortgage payments and any related legal costs to your total loan balance. You and your servicer then come up with a new mortgage payment schedule.
Extra time to arrange a private sale: If you need to sell your home, this plan lets you delay a foreclosure so you have time to sell.
Short sale: If you owe more money than your house is worth, your servicer might agree to a short sale. This means the servicer will accept the total proceeds from the home sale as full payment of the debt you owe. Note: This option could result in a loss or reduction in your future home loan benefit. Contact a VA loan technician at for more details.
Crucial Steps To Get Your Chase Loan Modification Approved
Applying for a loan modification can be frustrating especially if you do not have a clear picture of what to do. So if you are about to seek a Chase loan modification, read the following steps required by the lender and be guided. But remember, simply following these steps are not enough. You must satisfy their eligibility requirements.
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Avoid Foreclosure Prevention Scams
If someone offers to negotiate a loan modification for you or to stop or delay foreclosure for a fee, carefully check his or her credentials, reputation, and experience watch out for warning signs of a scam and always maintain personal contact with your lender and mortgage servicer. Your mortgage lender can help you find real options to avoid foreclosure. It is important to contact your mortgage lender early to preserve all your options. There are legitimate consumer financial counseling agencies that can help you work with your lender. Read Consumer Advisory 2008-1 for more information on protecting yourself from foreclosure prevention scams.
What Is A Foreclosure
Foreclosure is the term given the legal process that allows the lender to reclaim a home or other real property and resell it when the owner fails to make mortgage payments for an extended period. Details vary from state to state however, under federal law, a servicer generally is prevented from starting the foreclosure process until a loan is more than 120 days past due.
This taking and reselling of a foreclosed home is alarming enough, but if the property sells for less than the amount owed on the mortgage, the original owner could be on the hook for the difference . This can happen if the owner made a minimal down payment and has not been in the home long, or if local property values have slumped.
In cases where the property sells for more than the mortgage balance , the owner will be due the surplus. Sometimes forwarding addresses arent current or accurate, for instance notification falls through the cracks. In such cases, former owners should check with the local clerk of court. Requesting the record is free, or may even be online, and applying for the surplus rarely is complicated. Avoid anyone who offers to check on your surplus for a fee, or who offers to buy the rights to your surplus.
As you might expect, enduring a foreclosure does long-term damage to the owners credit history. Foreclosures also are a matter of public record.