Grants for Homeowners Trying to Avoid Foreclosure
For most Americans, owning a home is an essential part of the American dream. However, due to challenging economic times, countless families are experiencing financial hardships and are facing difficult choices as they struggle to pay their mortgages. If you're struggling to pay your mortgage and are facing foreclosure, you may be able to take advantage of available financial assistance options offered by local, state and federal government agencies.
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Local Government Programs
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Some local agencies that are currently receiving a Community Development Block Grant (CDBG) have partnered with non-profit housing agencies to provide foreclosure prevention programs and/or rescue funds to struggling individuals. The criteria you must meet to receive these funds vary by community. Contact your state's branch of the U.S. Department of Housing and Urban Development (HUD) for more information.
State Government Programs
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Some states have temporary mortgage assistance programs, where struggling individuals can apply for a second or third mortgage loan that carries a very low to zero interest rate. In most cases, these loans do not require a monthly payment and you do not have to repay the loan unless you sell your home, transfer the title, refinance and take cash out or no longer use the property as your primary residence.
Eligibility requirements differ in each state that offers this program. To determine if these programs are offered in your area, and to review eligibility requirements, contact your state's branch of the U.S. Department of Housing and Urban Development (HUD).
Federal Government Programs
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The federal government's Making Home Affordable Program offers loan modification for homeowners struggling to make their monthly mortgage payments. The program offers a refinance option for homeowners who are unable to refinance because their mortgage loan balance is more than the value of their home. The program is only available to homeowners whose mortgages are guaranteed by Fannie Mae or Freddie Mac. If Fannie Mae or Freddie Mac guarantees your mortgage, contact your mortgage lender to see if you meet the eligibility requirements.
If you meet the basic requirements for loan modification or refinancing, call your mortgage lender and ask to speak with a Loss Mitigation Representative. Request to complete a loan modification or refinance application under the Making Home Affordable program.
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