How to Stop Foreclosure with HUD

HUD stands for Housing and Urban Development. FHA is HUD’s Federal Housing Administration. The FHA does a variety of things including offering help to homeowners facing a possible foreclosure. The FHA has been helping homeowners for years, but with the recent foreclosure crisis, they are doing even more to keep people in their homes. Doing so not only helps the homeowners about to lose their homes, but it also helps keep home values up and neighbors in good working order.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Internet
• Phone

1. 

   Determine your eligibility for FHASecure. FHASecure is the FHA’s refinancing program, which has been available for some time. Homeowners can determine their eligibility before they are even in default. If the homeowner is eligible, she can get an FHA loan to pay off her current mortgage.

2. Check into new programs currently being created. With the current mortgage crisis, HUD, the Treasury, FDIC and the Federal Reserve have created a combined committee to create new programs to help struggling homeowners. These programs are being announced regularly.

3. Check with the FHA about a short refinance. The FHA has been in talks with lenders to urge them to create solutions on an individual basis. One possible solution offered is the short refinance solution. The lender would "write-down" the outstanding mortgage balance to 90% of its market value. This would decrease the amount owed by the homeowner. In most cases, the lender loses less money doing this than what would be lost with a foreclosure. However, lenders don’t jump at the opportunity so it is important to work through an FHA counselor.

4. Look into a FHA-insured mortgage. Hope for Homeowners is an organization designed to ensure FHA-insured mortgages maintain the highest standards. For example, with an FHA-insured mortgage, you are guaranteed a 30-year, fixed-rate, removal of any subordinate liens, and no prepayment penalties. Your home will be appraised by a FHA-approved appraiser for accurate appraisal. To qualify, your mortgage cannot exceed the maximum amount of $550,440 dollars.

5. Don’t make any decision without speaking to a knowledgeable counselor. HUD provides free or low-cost foreclosure prevention counseling nationwide. Call 1-800-569-4287.

Tips & Warnings

• Another organization, which can help you find a solution to avoid a foreclosure is HOPE NOW. The Homeowners Hope Hotline is 1-888-995-HOPE
• Don’t pay for foreclosure prevention counseling, unless it is low-cost counseling offered by HUD. There are countless scams aiming at taking advantage of homeowners in desperation. If a counselor guarantees certain results for a fee, it is probably a scam.

Resources

• Hope Now
• HUD

[AustinNotary]

on 11/12/2008 I really enjoyed the topic you wrote about.
Jenette
www.mobileaustinnotary.com