HUD Help for Foreclosure
The Department of Housing and Urban Development, along with the Department of Treasury, has developed programs to help distressed homeowners find alternatives to losing a home to foreclosure. These programs help homeowners obtain a lower monthly payment, pay their mortgage, or pay money to secure new housing for those who have sold their home. To find out which programs you qualify for, contact a HUD-approved housing counselor at 888-995-HOPE.
Other People Are Reading
-
Emergency Homeowners Loan Program
-
The Emergency Homeowners Loan Program provides up to $50,000 to homeowners who have experienced a 15 percent decrease in income. The declining balance loan can be used to pay the monthly mortgage, any payments in arrears, taxes, insurance and other mortgage related costs. The money can be received for up to 24 months, or until the funds have been exhausted, whichever comes first. There is no repayment required for the first five years. After that, the balance of the loan declines 20 percent annually.
Home Affordable Modification Program
-
The Home Affordable Modification Programs helps homeowners obtain a more affordable mortgage payment. If the homeowner successfully completes the trial period of the loan modification, his monthly payment will be reduced to 31 percent of the household's total income. To qualify for HAMP, the homeowner must be able to demonstrate a financial hardship. Also, he must not have convictions of felony larceny, theft, fraud, money laundering, or tax evasion in relation to a real estate transaction within the last 10 years to get a loan modification.
-
Mortgage Subsidy
-
Unemployed homeowners can apply to receive a temporary mortgage payment while they look for a job. The homeowner must be eligible to receive unemployment benefits to get help. Also, her income must be in the low-to-moderate level. The home facing foreclosure must be her primary place of residence. The unpaid principal balance of the loan cannot exceed $729,750. If the mortgage payment is more than three months delinquent, the homeowner will not qualify for help. The mortgage subsidy can be used in conjunction with the Making Home Affordable loan modification program.
FHA Preforeclosure Sales Program
-
The Federal Housing Administration helps distressed homeowners sell their homes to avoid getting a foreclosure on their credit history. Since the bank is taking a loss with the sale of the home, the homeowner must obtain its approval. FHA offers an incentive to the bank to approve the sale of the home. The homeowner is also provided $1,000 in relocation assistance if he completes the sale of the home within three months of submitting an application for help.
-
References
Resources
- Photo Credit young woman working on a laptop image by Aleksei Potov from Fotolia.com
