North Dakota Programs and Assistance to Stop a Foreclosure
It's never easy to deal with losing your home. Unfortunately, when faced with foreclosure, it can't be ignored. There are assistance programs available to North Dakota homeowners that give you a fighting chance. Act early to increase the chances of saving your home from foreclosure. At the first sign of a struggle to make your mortgage payment, seek help.
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Foreclosure Prevention Counseling
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Homeowners often benefit from foreclosure prevention counseling. This service provides you with the opportunity to meet with a foreclosure expert to evaluate your current situation and possible options. Prepare to provide your loan number and financial information, such as your monthly income and expenses. The counselor can qualify you for assistance through the federal Making Home Affordable program. If eligible, you can reduce your payment through refinancing or modifying the loan. Counselors also have access to loan servers that are able to facilitate debt reconstruction, consolidate payments and reduce payments. Community Action and The Village Financial are HUD-certified counselors that offer free counseling. Additional North Dakota foreclosure prevention counselors can be reached by visiting the HUD website.
Emergency Homeowner Loan Program
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HUD awarded $1.3 million to North Dakota for the Emergency Homeowner Loan Program. Homeowners who qualify can receive $50,000 to reinstate the loan or cover 24 months of mortgage payments. To be eligible, HUD requires applicants be at least three months delinquent and demonstrate the ability to resume making their mortgage payment within a reasonable period of time. As long as the borrower remains current with the mortgage, the loan is gradually forgiven over the five-year period.
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Making Home Affordable
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Homeowners who are delinquent can apply for a loan modification through the Making Home Affordable program. A lower interest rate and longer loan term can reduce the monthly payment. For homeowners who haven't yet fallen behind, the program offers refinancing options as well. Another portion of the program helps homeowners who can't afford to keep their home. When a borrower realizes it's best to leave the home, she can receive up to $3,000 in relocation funds by completing a short sale or deed-in-lieu of foreclosure. Your North Dakota lender must participate in the program to receive funds. A 24-hour toll-free hotline was created to help homeowners to learn more about the program. Call 888-995-HOPE for information.
Legal Aid
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There are legal aid organizations throughout North Dakota that provide advice and representation to low-income homeowners. Legal Services of North Dakota, or LSND, is a nonprofit organization offering foreclosure help to low-income and elderly North Dakota residents. Dakota Plains Legal Services is another agency that offers services to a variety of homeowners facing housing struggles. An attorney can help you file a response to the foreclosure notice, challenge the foreclosure and check mortgage paperwork for discrepancies or lender fraud.
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