Iowa Remedies for Foreclosure
It is important for Iowa homeowners facing foreclosure to understand there are options. Foreclosure can be avoided. Many homeowners do not realize free assistance is available. The average foreclosure process in Iowa takes about five months. During this time, you have the right to remain in your home. In fact, the Federal Trade Commission suggests staying in the home to avoid disqualification from certain programs.
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Iowa Mortgage Help
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The Iowa Mortgage Help initiative provides aid to homeowners who are delinquent or are currently struggling to pay their mortgage. The state-sponsored Iowa Mortgage Help connects homeowners to trained counselors who evaluate the situation to develop a course of action. In addition to counseling services, mediation is also available. Through mediation, homeowners, lenders and a neutral party meet to explore options.
Home Affordable Refinance
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The Home Affordable Refinance program allows Iowa homeowners to refinance mortgage loans at a lower interest rate. If you would not ordinarily qualify to refinance because of a decrease in the value of your home, the program makes it possible. You must be current on the loan. The home must also be your primary residence. Your lender can determine your program eligibility.
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Legal Aid
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An attorney can help you challenge the foreclosure. Legal advice and representation are essential to tackling foreclosure. Unfortunately, homeowners who are unable to pay their mortgage are often unable to afford the services of an attorney. Iowa Legal Aid is one of the HUD-approved organizations that helps low-income residents throughout the state.
Home Affordable Foreclosure Alternatives
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If you run out of options, consider selling the home. A short sale is when the lender agrees to accept less than the balance remaining on the loan. Another option is a deed in lieu of foreclosure. To complete a deed in lieu, the home must be on the market for at least 90 days. If the home does not sell, your lender may agree to let you relinquish ownership rights. If you participate in either foreclosure alternative, you can receive relocation money. The Home Affordable Foreclosure Alternative program rewards homeowners with up to $3,000 to be used toward moving into another home.
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