Preventing a Foreclosure by Getting Mortgage Help

Preventing a Foreclosure by Getting Mortgage Help

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The possibility of the family home being foreclosed is one thing that terrifies every homeowner. No homeowner ever wants to be stressed with missing mortgage payments and not being able to pay property taxes which may lead to foreclosure.

Homeowners faced with possible foreclosure due to delayed mortgage payments and unpaid property taxes can seek mortgage assistance.

BUT…a lot of organizations have offered help with mortgage payments as well as mortgage grants to help millions of Americans avoid foreclosure. Read on to get the help you deserve.

Mortgage Help Is on the Way

There are available mortgage help programs to prevent foreclosure offered by states, banks, HUD counseling agencies, non-profit organization as well as agencies of the federal government.

Programs available so you can save your house California from possible foreclosure vary in the homeowners’ assistance they provide. There are instances when direct financial aid mortgage payment is provided for the short-term. There are also instances when hardship refinance mortgage is offered.

Most non-profit organizations and government help with mortgage payments programs provide refinancing or some form of modification of their home loan to eligible homeowners. All you need to do is fill up a homeowner financial assistance form to avail of these various programs.

Mortgage payment assistance may come in the form of waived overdue fees, lowered interest rates and lowered monthly payments to provide families who need help with mortgage some time to get back on track with their payments.

Mortgage Help for the Unemployed

You may be eligible for refinance mortgage while unemployed if you are currently receiving a lower income due to reduced work hours or are simply just unemployed.

1. Hardest Hit Fund

These are mortgage grants because qualified borrowers do need to repay the zero interest rate extended for their loans.

This help with mortgage payments assistance is available only in states that have been hardest hit by the housing crisis. They are also only available to residents of states with the highest rates of job losses and unemployment. Click here for more information.

2. HUD Emergency Homeowners Loan Program

This help with mortgage payment program is available to families and individuals who have medical emergencies and have income reduction due to unemployment, shortened working hours and loss of job.

3. Home Affordable Unemployment Program

This help with mortgage payment is offered by the federal government. This program lowers the monthly mortgage payment of the unemployed for a maximum of 6 months giving him time to seek new employment. Click here for more information.

Mortgage Assistance Programs from the Federal Government

1. Home Affordable Foreclosure Alternatives (HAFA)

This mortgage payment assistance was crafted by the Obama administration and is the new short sale program of the federal government.

This program allows lenders and homeowners to earn financial incentives and gain financial aid to motivate them to avail of the simplified short sale process.

2. Neighborhood Stabilization Program

This help with mortgage payment program aims to stabilize homeowners, cities and towns as well as states that have high rates of home foreclosures.

The Service Members Civil Relief Act. This help with mortgage assistance is exclusively for members of the military. The program reduces interest rates on home mortgage to prevent foreclosure.

3. Military Homeowners Assistance Program (HAP)

This help with mortgage payment from government assists new veterans, active military service members and their families with their housing issues.

Chase and Bank of America as well as other national lenders and banks also provide similar assistance to active service members and veterans.

4. Federal Housing Authority Home Affordable Modification Program (FHA-HAMP)

This homeowners’ assistance program can possibly help individuals with their mortgage payments before they start being delinquent with their payments.

5. Hope for Homeowners

This is another program by the federal government through the FHA. This program aims to provide help with mortgage payments low income homeowners for payment or refinancing. This program may still be available to homeowners even if the property has drastically declined in value.

With the expanded Hope for Homeowners program, homeowners can now get financial help on a second mortgage. Lenders and banks participating in this program have been given additional incentives for supporting the FHA.

6. HUD Housing Vouchers and the FHFA Home Affordable Refinance Program

This is a program for help for homeowners with disability. In this program qualified homeowners receive help for their mortgage payments based on their income.

The disabled homeowner will use his monthly SSDI or SSI disability payment to cover his mortgage. If he is able to comply with other requirements, he can avail of additional aid.

With this program he can make regions mortgage payments by phone.

7. Home Affordable Modification Program (HAMP)

This assistance program can help the homeowners with lower monthly mortgage payments to allow continued easy and sure payment.

The federal government has created an enhanced version of this program which includes modifications of the loan with interest rates made even lower or reductions in the principal amount. This will allow more homeowners to avail of the program.

8. Home Affordable Refinance Program (HARP)

This government mortgage assistance program allows the homeowner to refinance and make his loan more affordable.

Making Home Affordable is a program providing loan modifications in cooperation with lenders and banks. The government, in most cases, subsidizes the reduced interest rates and fees. Know more about this and other programs created to provide relief to homeowners who have mortgage payments that are not correctly priced.

9. Streamlined Modification Initiative

This is program is centers on loan modifications so homeowners can avail of a repayment extension and lowered interest rates. Homeowners do not need a proof of income to avail of this help with mortgage.

10. Borrower Help Network

This is a resource homeowners can avail of for foreclosure assistance. The Freddie Mac Network can provide the homeowner with personal assistance from a specialist in debt counseling, delinquent home loan mortgage and other finances issues.

11. The Federal Government-Owned Fannie Mae and Freddie Mac Network

Fannie Mae and Freddie Mac are in charge of servicing most of the mortgages issued by most of the banks. This means most homeowners are qualified to avail their assistance.

12. Free Counseling on Legal Foreclosure

This program by the federal government provides legal and foreclosure assistance to eligible clients. The federal government has provided over 900 attorneys and law offices with grants for this purpose.

There are numerous government and private grants you can avail for help with mortgage payment. Although it does not necessarily mean that you have to avail of these programs, they are options which you can consider.

Mortgage Help Provided by Organizations

1. S. Department of Housing and Urban Development (HUD) Certified Non-Profit Counseling Agencies

Homeowners can seek the help of counselors to help them get back to regularly paying their mortgages or to avoid foreclosure. Services are often for hard up homeowners.

2. Community Action Agencies

The main goal of these agencies is to provide homeowners with counseling. Some of these agencies also provide resources on how to prevent the filing of foreclosure cases, mediation services and cash grants.

These community action agencies do not financial aid but they are able to provide homeowners with guidance and referrals to help with mortgage payment.

3. The Cherokee Nation

This organization provides guidance, resources and assistance to homeowners so they can avoid possible foreclosure of their homes. This organization only provides assistance to Native Americans all over the country.

4. Catholic Charities

The different locations of this organization are certified and approved by the HUD to provide free counseling programs on foreclosure to qualified families.

Most centers have case managers specializing in assistance pertaining to housing issues such as delinquency in mortgage payments, and general housing issues. They also provide counseling on how to deal with credit.

5. The Alliance for Stabilizing our Communities (ASC)

This organization provides counseling to help prevent foreclosure and advice on mortgage payments.

This organization was formed with the joint partnership of the National Council of La Raza (NCLR), the National Coalition of Asian Pacific American Community Development (National CAPACD) and the National Urban League (NUL).

6. Union Plus

This organization provides assistance mortgage issues to members of organized labor and union organizations. Immediate family members of the union members are also qualified for the free services.

Short and long term mortgage assistance payments are provided to those who have difficulties paying their mortgage as well as housing expenses. This organization also gives grants or cash to members for paying their mortgages.

7. Save the Dream Tour

This is NACA’s venue to process modifications in mortgages operating from various major cities. Thousands of homeowners participate in the Dream Tour events so they can get naca refinance eligibility.

Attendees of the Tour get to meet representatives from many lenders and banks to negotiate for interest rates which can go to as low as 2%. They can also negotiate to have the principal lowered. Other forms of assistance are also available.

8. Neighborhood Assistance Corporation of America

This organization has more than 40 offices across the country. They have mediators and counselors that can assist in preventing home foreclosure. They also provide a lot of solutions for mortgage issues.

Neighbor Works America. This organization provides the National Foreclosure Mitigation Counseling Program. This foreclosure and mortgage assistance program is Sessions, group events and workshops.

9. NID-Housing Counseling Agency (NID-HCA)

This agency provides free services for foreclosure counseling, credit repair and predatory lending. It also provides assistance to homeowners with regards to foreclosure and mortgage payment defaults.

All these services are to make sure that people get to retain their homes. This agency is approved by the HUD.

10. Mortgage Assistance from Lenders and Banks

Mortgage Forbearance Programs. This program is offered by Wells Fargo, Citibank, JP Morgan, and the he Bank of America. This program allows mortgage payments to be temporarily suspended.

The temporary suspension will allow the homeowner to study available options. He will also have the time to work on loan modification and counseling. Home foreclosure is also temporarily suspended during this period.

11. Homeownership Centers

These centers which can be found across the country were opened by J.P. Morgan Chase. These centers provide troubled borrowers with face to face free consultations. These centers are open to anyone so they can receive the service and attention they deserve.

JP Morgan Chase is continually creating programs to provide homeowners with a multitude of options to address foreclosures, and delinquent mortgage payments. The bank also provides debt counseling.

JP Morgan Chase thrives to do its best to assists clients of varied income levels backgrounds, and ages with the ultimate goal of preventing foreclosures.

12. Washington Mutual and JP Morgan Chase

These financial institutions set up a $70 billion fund for a help with mortgage payment plan to aid over 1 million delinquent homeowners.

13. You Have Options Mortgage and Foreclosure Assistance Plan

This assistance plan is offered by the Fifth Third Bank. This mortgage and foreclosure assistance plan provides loan modification and refinancing solutions for homeowners within their area.

14. Bank of America and Countrywide Program

Around 400,000 thousand borrows will benefit from this program which provides free counseling, reductions on the principal loan amount, and loan modifications.

Some borrowers may also receive relocation assistance so they can move to a home which they can comfortably afford.  Many borrowers who qualify for this mortgage assistance were granted by Countrywide with loans that are sub-prime in nature.

Countrywide was sued by a lot of state governments for granting sub-prime home loans without fully informing borrowers of the nature of the loan. As a result of this lawsuit the lender has allocated billions of dollars as settlement which will directly fund assistance to the duped homeowners.

15. Citicorp Mortgage Assistance

Citicorp is set to assist homeowners avoid foreclosure of their homes. Citicorp is waiving its rights billions of dollar worth of loan principals and fees.

Additional assistance for their mortgages will also be extended to borrowers who have had income reductions and also to the unemployed.

16. Bank of America Foreclosure Prevention

Bank of America provides homeowners with several mortgage and foreclosure assistance programs. These programs were made available since January 2008 and has so far modified thousands of home mortgages.

These programs include reductions in interest rates, short sales, reductions in principal, loan modifications and other resources. Many of these processed modified mortgages were originally held and issued by Countrywide.

BOA has created several help centers across the country which provide free counseling and advice to homeowner.

17. Mortgage Assistance Program of the Associated Bank

This mortgage assistance program is focused on the unemployed. It allows the homeowner to modify his monthly mortgage payment to allow him to stay in his home. This is for a period of up to 12 months.

This program can also suspend monthly payments or lower the monthly rate of interest for a specific period of time.

18. Modification Program by Wells Fargo

The bank offers homeowners two main plans for mortgage modification. These programs have assisted thousands of homeowners by making interest rates more affordable and giving them more time to pay for their home loan.

The Fast-Trac solution adjusts mortgage rates while the ProjectLifeline delays the process of foreclosure.

Other help with mortgage programs include forbearance and reduction of the principal loan amount.  Wells Fargo has so far slashed tens of billions of dollars from the principal amounts of homeowners’ home loans.

19. Wells Fargo / Golden West / Wachovia Refinancing Program

This program aims to help homeowners who have ARM loans that shifts to higher interest rates or an interest only home loan. This program has assisted millions of borrowers pay their home mortgages or refinance their loans.

Many of the homeowners who took advantage of this assistance were predatory lending practice victims.  This program allows you to avail of asc mortgage payments.

20. Customer Assistance Program of the Regions Bank

This program provides modifications for home loans, repayment plans and forbearance. This program has provided help with mortgage payment assistance to numerous homeowners so they could avoid foreclosures.

21. Foreclosure Moratorium from the Marshall & Ilsley (M&I) Bank

This help with mortgage assistance allows borrowers to have more time for mortgage issue resolutions, credit score improvement and financial status improvement.

The bank also has a Homeowner Assistance Program.

Foreclosure Assistance and Mortgage Refinancing Programs from the State

Help with mortgage is available in almost all local and / or state governments. Government help with mortgage includes programs to end foreclosures, services for loan modifications, refinancing programs, and mortgage assistance programs. Each state has their own set of programs.

1. Property Tax Help

There has been a slump in the value of homes in many parts of the country. Chances are you are still paying property and real estate taxes based on the higher value of your home.

You cam contest the assessment of your property so you can pay lower property taxes. Whatever you can save you can add to your mortgage payments.

2. Foreclosure Mediation Program

Each state, county and city government has this program available to assist homeowners avoid foreclosure of their home.

Many local courts have establish their own mediation programs to allow homeowners and lender banks to meet with a professional mediator or attorney to exhaust all options before finally effecting a foreclosure.

Self-Help Steps in Dealing with Home Mortgages

When you are faced with an imminent foreclosure due to delinquent payment of your mortgage, there are steps you can take on your own to prevent this situation from happening.

  • You do not always rely on the assistance and solutions offered by a housing counselor, the government and the lender.
  • When doing these things on your own though, bear in mind that any time you need help, you can very well seek free mortgage advice, from mortgage counselors. You can also avail of the programs and assistance for help with mortgage payments provided by non-profit organizations, the government, the lenders and the banks.
  • Review and understand the details of your home mortgage more importantly the major terms and conditions as well as your rights and obligations.
  • Research on the things you need to do when you start defaulting on the payment of your home mortgage. There are steps you need to take to avoid foreclosure so you need to act fast.
  • As soon as you realize that you will not be able to meet your monthly mortgage, immediately communicate with your lender or bank to discuss possible options and solutions.
  • The provider of your home loan should be able to provide some assistance and counseling on foreclosure, credit and budgeting, waiving of fees as well as mortgage modifications.
  • Learn about fixed and adjustable home loans which you can use to refinance your mortgage. Refinancing can bring down the cost of your monthly mortgage payments especially so with low interest rates.
  • Seek the help of counseling agencies (credit, housing, mortgage) to assist or represent you when negotiating or mediating with the banks or lenders. They can also assist you with the paperwork. Be wary though of scam artists. Check out too the American mortgage assistance reviews. More here.
  • Consider selling your home even before foreclosure hits you. Research and understand the entire process. Weigh its pros and cons as well as its effect on purchasing anew home in the future and your credit score.

More Solutions for Help with Mortgage

When you start being delinquent in your home mortgage payments, there are programs and solutions your lender can offer to avoid foreclosure.. There are two things that can save your home from foreclosure:

  • The amount of payment you can afford and are willing to pay.
  • The amount of payment your bank or lender is willing to accept.
  • The amount you can afford to pay depends on several factors including:
  • Type of home loan
  • Amount of delinquency.
  • Available resources and assets.
  • Monthly income.
  • Household expenses.

It is important that you understand the procedure of foreclosure before you can select the best help with mortgage option. Your main objective is to prevent foreclosure by all cost.

Here are some of the steps you can take to stop foreclosure:

  • Go for a deed instead of a foreclosure

A deed is when a homeowners turns over the deeds and convey of his home to the holder of the mortgage. This option works well for both the borrower and the lender.

Choosing this option will make the homeowner debt-free. It will not affect his credit score too much. Continue reading.

  • Short pay refinance

This means the bank or lender agree to lower or give you a discount on the balance of your loan. It is a bit similar to a reduction in the principal. A short pay refinance is often done with a new lender.

  • Reductions on Mortgage Principal

This is starting to become a common option. Studies reveal that a reduction on the balance of a mortgage is the best solution to address a housing crisis.

Latest data show that lenders and banks have reduced or deferred the principal balances of up to 15% of the total home mortgages. This means billions of dollars have been written off from the principal amounts of home loans.

  • Mortgage Loan Modification

The main reason for delinquent payment of mortgages is that the borrower, due to financial or personal circumstances, becomes incapable of meeting his obligation.

Modifying a home loan can make it more affordable to the borrower because the interest rates can be lowered and some of the fees can be waived. Loan modification programs offered by banks come with as low as 2% interest rates.  Learn more about loan modifications.

  • Short Sale

Short sale will allow you to sell your house at a price higher than what you owe the bank or lender. It is a good alternative to foreclosure because you can pay your mortgage balance and still have some cash left.

Short selling your home can be a long and tedious process but it is fast increases in popularity and has become a most acceptable option for servicers, real estate agents and of course, the banks.

  • Declare bankruptcy

Declaring bankruptcy is another option that can prevent your home from being foreclosed. Learn more about bankruptcy and how it can affect your mortgage balance and credit score as well as how it can help save your home from foreclosure.

In the unlikely event that you will need to go through a foreclosure process, attorneys say that you can still stay in your home. As a matter of fact, they say that continuing to stay in your home can delay the process of foreclosure for months and even stop the filling for foreclosure.

The FHA suggests that you look into all possibilities and solutions of your home loan with your lender.

It is important you are aware of your options for mortgage payment assistance. You should know what to do and who or where to ask for help so you can save your home from foreclosure.

Know and understand everything about foreclosure especially what may cause you to end up in such a situation. The information will allow you to better recognize and deal with any issues that will affect your capability to pay your monthly bills as well as your monthly mortgage payments.

If you are telling yourself, “I need help paying my mortgage,“ there are a lot of workable solutions you can take advantage of!

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About Mark Sidway

Hey everyone I'm Mark. I'm obsessed with finding programs and loopholes for getting people the financial help they deserve. I'm an expert when it comes to taking advantage of financial relief programs and I can probably help you. Subscribe below!