As a result of the recent housing crisis, the government has taken big steps to help homeowners stop mortgage foreclosure. Perhaps the most well-known among these are the Housing and Economic Recovery Act, and the Homeowner Affordability and Stability Plan. By providing multi-million dollar foreclosure finance to foreclosure counseling agencies, the department of Housing and Urban Development (HUD) and other foreclosure assistance centers, these bills seek to help homeowners stop foreclosure by providing counseling, assistance in dealing with banks and lenders, and loan modification and refinancing services.
Unfortunately, there are no direct grants provided to homeowners from the government. But there are plenty of services out there that the government has invested grant money in to help you stay in your home.
Reaching out to a local counseling service through HUD, Hope Now or the Neighborhood Works Association is a great place to start. These services will make sure you understand everything about the foreclosure process, including how to buy time to pay off your debt and take advantage of moratoriums and other foreclosure alternatives.
One of the most helpful parts of the new legislation to help homeowners is the Making Home Affordable plan. This provides foreclosure assistance in the form of federally sponsored loan refinancing. A big part of the foreclosure problem is that homeowners are buried under high monthly mortgage payments that they are not able to keep up with, especially in the current economy. Refinancing foreclosure mortgages for a lower interest rate can be a very helpful way to get your payment schedule back on track and make your mortgage more affordable. With a second mortgage, foreclosure can be avoided and you can stay in your home.
Also, veterans should be sure to check with the VA department, and homeowners under Fannie Mae, Freddie Mac, or FHA-sponsored loans should be sure to check with their government lenders to find out all of their options.
While you may not be able to get grants to help stop foreclosure directly, you can take advantage of all kinds of federal and local government programs to stop foreclosure. You can avoid a pre foreclosure short sale often just by talking to your foreclosure lender.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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