HUD Foreclosure Rights

Housing and Urban Development foreclosure rights extend the promise of fair dealing, and timely notification to homeowners. HUD staffers offer housing counseling services along with informational tips on avoiding foreclosure for homeowners who are in danger of losing their primary residence. Relocation assistance is also offered through local HUD offices to assist homeowners who are evicted from a rental property, or have been foreclosed upon by a lender.

Refinance Program

HUD homeowners can elect to participate in the "Home Affordable Refinance Program" when falling behind in their payments. The homeowner must be at least 125 percent behind on their mortgage payments to qualify for this home refinancing offer. This program grants the right for homeowners to modify the terms of their loan and create an affordable payment option to avoid foreclosure.

Good Faith Estimate

Homeowners HUD foreclosure rights also include the right to see a "Good Faith Estimate" of all settlement charges and fees upon demand. The right to question charges, loan and refinancing terms is also assured through the HUD office. Homeowners also have the right to receive a copy of the HUD publication, "Buying Your Home" to become better informed about the process, rights and procedures.

Hope Now

HUD clients are entitled to ask for advice and assistance with their foreclosure notice. HUD will refer clients to programs and possible grants sources, which may be able to offer foreclosure prevention, help to the homeowner. HUD's relationship with the "Hope Now" credit and foreclosure program can aid clients develop a plan to stay in their homes. HUD can also serve as a liaison with the client's lending institution and try to negotiate an agreement to prevent property foreclosure, but is not required to offer this type of assistance.

HUD Services

Homeowners are entitled to a 20-day window to respond to a foreclosure notice. Should a homeowner not respond during this designated time, he might not be able to develop a plan to stay in the home or be offered a chance to fight the judgment. Free legal assistance is offered in most states to aid delinquent homeowners fight a foreclosure proceeding. HUD staff can refer homeowners to reputable local sources of legal aid prior to or during the foreclosure process. All HUD clients are entitled to the protections provided under the Federal Fair Housing Act. This act prevents discrimination related to housing due to race, national origin, familial status, ethnicity, disability or military status.

Redemption Period

HUD foreclosure rights allow homeowners a redemption period in order to save their homes. This final effort to save the home occurs only after a lending company has foreclosed upon the property. While HUD assists homeowners to reclaim the home, any foreclosure processing fees must be paid by the homeowner. Typical processing fees include court filing fees and lender-imposed interest due to delinquent payments. The guidelines and timelines for the redemption period vary by state.

References

• HUD Government Website
• eHow HUD Foreclosure Informational Video
• HUD Foreclosure Informational Webpage

Resources

• LARCC Foreclosure Assistance Pamphlet