How can the Government Help you Stop Foreclosure?

Enlist the Help of FEMA

The Federal Emergency Management Agency (FEMA) supports homeowners caught up in manmade or natural disasters. When Hurricane Gustav made landfall recently, FEMA, in conjunction with HUD, enacted a 90 day moratorium on property foreclosures if the real estate was located in a presidentially identified disaster area. In the wake of the 2001 terrorist attack on New York, FEMA provided up to 18 months of continued mortgage and rental assistance for homeowners facing foreclosure. If you live in a disaster affected area, enlist the help of FEMA to avoid or stop foreclosure proceedings.

Participate in the FHA Secure Program

The Federal Housing Administration (FHA) is offering help to homeowners with adjustable rate and also interest only mortgages (a link is provided in the Resources section). You can not only stop foreclosure, but also avoid it altogether if you contact the FHA before you fall behind more than three payments. FHA Secure assists you in refinancing your home to a fixed rate mortgage loan, but you have to qualify for the loan. If you are simply in over your head because you should not have purchased your home in the first place--and you cannot qualify for a loan in the amount needed--FHA cannot help you.

Choose the HOPE

If you have a conventional loan but pay more than 31 percent of your gross monthly income on mortgage payments, the FHA's HOPE for Homeowners program (a links is posted in the Resources section) may be able to stop foreclosure for you. You are required to pay three percent in a mortgage insurance premium up front; in return, the lenders participating in the program will agree to help you refinance your home at a lesser value, effectively cutting your monthly payments.

Speak with a HUD housing counselor

The US Department of Housing and Urban Development (HUD) (a link is provided in the Resources section) has teamed up with housing counselors nationwide who specialize in helping homeowners on the verge of foreclosure identify public and private programs to save their homes.

Resources

• Visit FHA at the Portal.HUD.gov site to qualify for the FHA Secure Program.
• The FHA HOPE for Homeowners programs fact sheet and links are found at the Portal.HUD.gov site.
• Search for a HUD housing counselor at the HUD.gov site.