How to Get Government Help to Avoid Foreclosure
The foreclosure crisis is showing no signs of easing up any time soon. However, an increasing number of government programs are available to help homeowners keep their homes, and avoid foreclosure whenever possible. The programs range from free, credible advice from foreclosure counselors, to actual cash grants to help bring overdue mortgages up-to-date.
Even if foreclosure is inevitable, there are programs to help people negotiate the best possible terms, and adjust to their new living situation.
Find out how to take best advantage of all the government assistance available to homeowners who are 'underwater', or simply behind in their monthly mortgage payments.
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Instructions
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**Talk to a Foreclosure Avoidance Counselor**
The federal government (through the Department of Housing and Urban Development, or HUD) is working closely with private-sector counselors to provide advice, guidance and mentoring to those in danger of foreclosing on their homes.
Speaking with a credible foreclosure avoidance counselor can be your best and most important first step. The counselor can help steer you through the complexities of banking rules and government programs, and help find a path out of foreclosure.
Best of all, a knowledgeable counselor can also help determine your eligibility for federal, state, and local cash assistance that you can use to help bring your mortgage payments up-to-date.
Visit the link for Foreclosure Avoidance Counseling, in the Resources section of this article, for more information, and to find resources in your area.
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**Beware of Counseling Scams**
Where there are families in financial trouble, there are scam artists preying on their misfortune, offering unrealistic help, and trying to put them into even worse financial shape.
Scams may take the form of refinancing fraud, fake government loan modification programs, title transfer and bankruptcy scams, and other variations, all of which sound convincing.
Steer clear of these scams at all costs. Your best bet is to seek advice from a certified counselor, as identified in Step #1, above.
Also take a look at the Tips to Avoid Foreclosure Scams in the Resource section.
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**Contact Your Bank**
Unless your counselor advises otherwise (which would be unusual, but not unheard of), you should contact the bank that holds your mortgage to discuss your situation.
*Do not put this off.*
The bank is ultimately the only entity that can alter the terms of your mortgage, and decide on workout options. In fact, one of the first steps the bank will probably take will be to provide you a loan workout package, to formally begin the process for finding a financial solution to your situation.
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**Thoroughly Check Local Resources**
Your counselor will steer you to many available resources, but make sure to do your own homework, and identify every possible source of assistance in your community.
These can include grants and low-cost emergency loans, pro bono (free) legal help, special programs for veterans, minorities, or homeowners in particular neighborhoods, and so on.
See the Resources section for a link to Foreclosure Help in Your State, city or county.
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**Think Outside the Box**
Some homeowners have successfully delayed or avoided foreclosure by adopting unusual strategies, such as requiring the bank to "produce the note", or contacting local news shows to highlight their plight (and perhaps embarass the bank into finding a solution). See the Resources section for more details.
Discuss these options with your counselor, to see if they might make sense for your particular situation.
Best of luck staying in your home.
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Resources
- Photo Credit hud.gov
