Government Help for Foreclosure Relief
Federal and local agencies have joined together to help United States' homeowners in danger of losing their homes to foreclosure. Under the 2009 Financial Stability Plan, President Barack Obama introduced foreclosure prevention initiatives that help homeowners make their mortgage payment more affordable. The Department of Housing and Urban Development, or HUD, and the U.S. Department of the Treasury have continued to expand foreclosure relief options in providing funding to local governments and non-profit agencies. Many home-ownership seminars and counseling programs have been made available to educate homeowners on how to avoid getting into foreclosure.
Other People Are Reading
-
Housing Finance Agency Help
-
In February 2010, the Obama Administration allocated money to states that were hit the hardest with foreclosures. The Hardest Hit fund helps distressed homeowners by reducing the unpaid principal balance of their loan, financial aid for those who are unemployed or transition assistance for those that need to secure new housing. The homeowner must be in the low to moderate income level to qualify for help.
On August 11, 2010, HUD announced additional support for states that did not receive Hardest Hit money. The Emergency Homeowners Loan Program, or EHLP, provides a declining balance loan up to $50,000 to homeowners that have experienced a decrease in income. The homeowner must have had income at or below 120 percent of the area median income prior to the decrease to qualify for help. Both of these programs are administered through local housing finance agencies.
Making Home Affordable Programs
-
The Making Home Affordable programs that were implemented in 2009 offer homeowners in default, or those who will be, an alternative to having their home foreclosed. Qualified homeowners can apply to receive help to modify their loan payment, refinance their loan or obtain a forbearance. Homeowners can also get help with selling a property with negative equity. For all these programs, the homeowner must able to demonstrate a financial hardship. The website has an eligibility tool to help determine if you are qualified for any of the programs.
-
Homeowner Events
-
The Making Home Affordable website has information about ongoing homeowner events in an area near you. These events are to educate distressed homeowners on the foreclosure process, programs available to help prevent foreclosure, how to create a realistic budget and methods to rebuilding credit. These services are provided at no cost to the homeowner. The website has a drop-down menu of states to select from. Choose the state that you want to search for events in. Once you have selected the state, the organization sponsoring the event and links for more information are provided.
Homeownership Preservation Foundation
-
Since 2007, the Homeownership Preservation Foundation has provided foreclosure prevention resources to distressed homeowners. An online chat counseling session and the HOPE hot line are also available 24 hours a day. Housing counselors perform a financial assessment to determine if the homeowner is eligible for any government foreclosure relief programs. The counselor also speaks directly with the mortgage servicer to help the homeowner obtain a loan modification, refinance or forbearance. Foreclosure prevention services are provided at no cost to distressed homeowners.
-
References
- Photo Credit home by the ocean image by Joann Cooper from Fotolia.com
