How to Qualify for Mortgage Stabilization
The prospect of losing your home to foreclosure is terrifying. Fortunately, some homeowners can prevent foreclosure by taking the proper steps to seek assistance. The U.S Department of Housing and Urban Development (HUD) runs a Neighborhood Mortgage Stabilization program for the states hardest hit by the housing crisis. In 2009, New Jersey passed the Mortgage Stabilization and Relief Act to help tackle the foreclosure crisis. Under the act, assistance is offered to qualified New Jersey homeowners through the Mortgage Stabilization Program and the Housing Assistance and Recovery Program (HARP). The program encourages lenders to refinance or modify loans. Homeowners must meet certain requirements to qualify for mortgage stabilization.
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Instructions
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Regardless of your state, at the first sign of a struggle to meet your payment obligation, immediately contact your lender. Express your desire to participate in a mortgage stabilization program, if possible. .
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Meet the property requirements. In New Jersey's program, the property must be a one-, two- or three-family house or condominium in danger of foreclosure. You must occupy the unit for at least a year before applying for assistance through the program.
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Meet the income requirements. New Jersey requires that your total household income not exceed 120 percent of the median household income in your county or the income limit imposed by the New Jersey Housing and Mortgage Finance Agency.
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Attend counseling. New Jersey's program requires homeowners to participate in budget counseling sessions after receiving assistance. Counseling must be provided by a HUD-approved counselor.
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