About Grants for Homeowners Facing Foreclosure
Homeowners who are facing foreclosure do not need to feel hopeless about losing their homes. Alternatives exist for them, including government-sponsored grants, to help facilitate devastating financial hurdles.
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Hope for Homeowners
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People who qualify still may have difficulty paying their mortgages. The U.S. Department of Housing and Urban Development (HUD) oversees the Hope for Homeowners program grants.The refinancing program is for the economic class stuck in the middle: homeowners who qualify for loans, but are struggling with their current mortgages.
Hope Now
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Hope Now combines agencies to help homeowners overcome foreclosure. The program was started in 2008 for homeowners facing foreclosure on their primary sole residence. The effort, called Hope Now, combines the resources of HUD-approved counselors and the Federal Housing Administration (FHA).
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Contact a Counselor
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First steps to take for homowners include making the call to a counselor, who then determines eligibilty. Homeowners battling foreclosure may contact a HUD-approved counseling agency listed on HUD.gov, the Hope Now Alliance at 888-995-HOPE or the FHA at 800-CALL-FHA.
Borrower's Responsibility
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Program premiums are rolled into low-interest or interest-free options. Borrowers pay the FHA three percent of the original mortgage loan and one and a half percent annually as a premium of the difference still owed on the existing mortgage. These fees may be rolled into special refinancing or repayment grants, so they don't have to be paid all at once.
Repayment Options
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A second interest-free mortgage is one option to pay off the delinquency. Depending on their situations, homeowners may be eligible for a repayment plan over a 10-month period. Loan modification programs also exist. A second interest-free mortgage and low-interest 15 year Fannie Mae loan are other considerations.
NeighborWorks America
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NeighborWorks funds the agencies helping homeowners and provides vouchers for affordable housing. NeighborWorks America awards grants to state housing and HUD-approved agencies and NeighborWorks organizations. Funds programs for counselors who help homeowners facing foreclosures and provides vouchers for affordable housing.
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