July 30, 2021

Home Loan Modification Programs From HUD To Help You Avoid Foreclosure

The US Dept of Housing and Urban Development exists to ensure that the most needy in the country are provided for in terms of accommodation. An important remit of their work is now to ensure the number of households undergoing foreclosure is kept to an absolute minimum. Unfortunately due to the knock on effects of the recession more families are struggling to keep up with their mortgage repayments. The HUD offers home loan modification programs to help families remain in their homes when times are tough.

Home Loan Modification

If you are currently in a financially precarious situation and you believe the risk of foreclosure is great you should seek assistance as early as theoretically possible. Your first point of contact should be a HUD sponsored counselling service that would provide you with advice and information that could help to prevent foreclosure from taking place.

The HUD has joined together with Neighbor Works America to provide counselling services in most towns and cities in the country. The staff manning these offices are able to help you understand whether you match the criteria set out for loan modifications and what other steps you could consider taking that would allow you to remain in your home.

You may have heard about the new Making Homes Affordable Program. This has been designed to provide assistance to homeowners when they want to refinance or in some way modify their existing mortgage so that the terms are easier to manage.

The refinancing option under this scheme can be taken up by homeowners that have so far kept up with their repayments but are worried that the rate of interest is above the lower rates which are now common place. By lowering the interest rate on their mortgages many families are able to continue making payments on schedule and thus avoid foreclosure.

The loan modification options that fall under the Making Homes Affordable Program have been designed to help individuals who have fallen behind on their mortgage payments and have a low income. Unfortunately many people have found themselves out or work or having to put in fewer hours than when they took out their home loans.

Another HUD program is HOPE. This has been created for this people who believe they are at immediate risk of foreclosure due to defaulting on loan payments. This program can offer a new mortgage loan that spans thirty years and has a fixed rate. The mortgage is backed by the FHA and will be met in full by the government if you were to still default on payments, at which point the property would be put on the market.

There are strict criteria that need to be met to qualify for the HOPE program. For example the loan must have started prior to January 1st 2008, and you should have already made a minimum of six loan payments. Also a background check would be carried out to ensure you have never been convicted of any fraudulent behaviour. The property must also be your primary place of residence rather than a second home.

Find out more: http://www.makinghomeaffordable.gov/


  1. jilson says:

    Couldnt agree more with that, very good article

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