About Grants to Help Stop Foreclosure
The government continues to pass legislation that makes it easier for homeowners across the United States to receive credit and debt counseling services, grant money, and other financial assistance.
Assistance is generally laid out as part of a grant program that gives qualifed homeowners facing foreclosure the chance to stop the process. Many homeowners throughout the U.S. have used these programs to retain ownership of their home.
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Significance
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The federal government approved a multi-million dollar grant agenda known as NeighborWorks-America's National Foreclosure Mitigation Counseling Program. Monies offered through the program are awarded to organizations that offer homeowners with financial problems, and those nearing foreclosure, relief and aid to stop foreclosures.
As part of this agenda, 16 HUD-approved housing counseling intermediaries, 32 state housing finance agencies, and 82 community-based NeighborWorks® organizations will receive grants to futher assist families needing to stop a foreclosure.The grant money offered to these participating organizations will fund assistance programs and debt management schemes offered to homeowners across the United States. The organization and the homeowner work in concert to request individual money for the homeonwer or federal assistance in stopping the foreclosure from escalating.
History
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NeighborWorks® America is an independent, congressionally chartered nonprofit organization headquartered in Washington, D.C., with a mission to provide long term homeownership and economical rental housing to families in need of financial assistance. NeighborWorks documents indicate that, "Grantees will use the funds to provide mortgage foreclosure intervention and loss mitigation assistance primarily in states and areas with high rates of defaults and foreclosures. The target clients are owneroccupants of single-family (one to four unit) properties that obtained subprime loans, are delinquent on
their mortgages, and are at risk of default and foreclosure."
Approved by Congress in 2007, NeighborWorks was passed as part of the FY08 Consolidated Appropriations Bill.
Considerations
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Applicants are not limited to a minimum or maximum application amount. However, each applicant must demonstrate the need for assistance, a willingness to receive mitigation or counseling servies with an appropriate NeighborWorks organization, and the capacity to improve one's financial standing after receipt of assistance. NeighborWorks cannot guarantee a full award for each requested amount, as this can depend on several factors, including demand from other applicants and the recommendations made by the grant reviewer board. NeighborWorks will notify the applicant of his award amount after a complete review of the request.
Identification
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Grants for foreclosures are provided by the state and are determined by the per capita need. The larger the incidence of foreclosures statewide, the more federal grant money will be received. Generally, cash assistance payments are not made to individuals, but this kind of short term aid is possible and would need to be used to bring the mortgage current if granted. In most cases, assistance is provided through non-profit organizations. These organizations receive funding through grant schemes like NeighorWorks to assist struggling homeowners. In additional to providing grant money, these non-profit organizations also help to negotiate mortgage loan rates. The term of each mortgage loan will be negotiated on a case by case basis and will take place after an initial review has been conducted.
Warning
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Be wary of Internet scams that require large fees upfront and offer no guarantee or customer service assistance. These Internet sites profit by offering outdated information that is of little to no use to those who purchase the service. For a complete listing of government grants, visit a government sponsored website or purchase a hard copy listing from a book store.
When browsing the Internet, narrow your search to ".gov" websites. Some non-profit organizations offer legitimate resources, but many national non-profits can be cross-referenced through a large government database like Grants.gov or USA.gov, for example. Avoid searching "org" websites by going to the main source for all government grants.
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