money sectionmoney sectionForeclosure has devastating consequences. In addition to losing your home, foreclosure destroys your credit score and affects your ability to purchase or rent another property in the future. Various foreclosure assistance programs exist to help Texas homeowners prevent foreclosure. To increase your chances of avoiding foreclosure, contact your lender at the first sign of difficulty making your mortgage payment.
The Federal Housing Administration (FHA) insures loans for first-time home buyers. Originally, President Obama's Making Home Affordable foreclosure prevention programs did not include FHA insured loans. However, as of Fall 2010 the program was extended to include FHA loan modification and refinancing as alternatives to foreclosure. FHA offers a short sale program that allows a homeowner to avoid foreclosure with the sale of his property. Foreclosure prevention housing counselors are available to assist homeowners with FHA insured mortgages.
Realizing that you cannot afford your mortgage payments is frightening. If you're weighing your options, both foreclosure and bankruptcy are probably looming large in your thoughts. However, bankruptcy and foreclosure are not synonymous, and sometimes, despite the negative connotations, one or the other can be a financial lifesaver.
There are times when a homeowner will struggle financially for a few months and then regain her financial footing. After getting back on her feet, she will then look for ways to save her home from foreclosure. There are options offered by lenders, as well as options offered by the federal government, that are designed to help qualified homeowners who can afford their monthly payments avoid the loss of their home due to foreclosure.
The U.S. Department of Housing and Urban Development strives to provide individuals with more opportunities for homeownership, while supporting community development and increasing accessibility to affordable homes. In this, HUD also strives to assist homeowners in maintaining their homes and avoiding potential foreclosures. HUD sponsors several programs that are designed to help homeowners prevent foreclosure.
