Typical home financing involves a buyer finding a home and applying for a mortgage, getting…
Are you asking yourself how to save your home from foreclosure? Many Americans are still facing financial difficulties. No matter how hopeless it may seem, you have options.
You should always keep your lender informed if you’re having trouble making your monthly mortgage payment. Explain to the bank officer why you are having difficulty and how long you think you will be unable to pay your mortgage. Then you should ask the bank if they sponsor any programs that will help you keep your house.
It’s frightening to call the bank when you’re having financial difficulty, but it’s important to keep them in the loop if you want to save your home from foreclosure. Additionally, you can follow these helpful tips from the U.S. Department of Housing and Urban Development (HUD).
Request a Loan Modification
HUD offers several programs to help lower monthly mortgage payments. By refinancing to a lower mortgage rate, you can save thousands of dollars over the life of your loan. You could also possibly save hundreds on your monthly mortgage payment by reducing the interest rate.
Programs available include:
- HAMP The Home Affordable Modification Program can save homeowners up to 40% on their monthly mortgage payment.
- PRA The Principal Reduction Alternative helps homeowners whose homes are worth significantly less than the amount that is owed on their home.
- 2MP The Second Lien Modification Program helps homeowners who modified their primary mortgage under HAMP. If you have a second mortgage, you may be eligible for modification or principal reduction on your second mortgage.
- HARP If your loan is current but you’ve been unable to refinance under a traditional mortgage, you may be able to save your home by refinancing under HARP.
Many homeowners have experienced a decrease in their home’s value. If you are in this situation, you may qualify for HARP and PRA. You may also qualify to have your second mortgage reduced or eliminated through Treasury/FHA Second Lien Program, or FHA2LP.
If you are unemployed and can’t make your mortgage payments, you can save your home with Home Affordable Unemployment Program, or UP. This program provides a temporary reduction or suspension of your payments.
Contacting Your Lender
If you are having difficulty discussing your financial situation with your lender, there are programs available to help you. The Federal Housing Administration (FHA) has staff available to answer your questions and assist you with other options to save your home. You can call the National Service Center at 877-622-8525. You can also call the FHA Outreach Center at 800-225-5342 for assistance.
There Is Help
Nothing is hopeless when it comes to saving your home. There are programs available to you and people who want to help you. For more information on foreclosure and these programs, visit the HUD website at: https://www.hud.gov/topics/avoiding_foreclosure. For more tips to save your home and prevent foreclosure, take a look at this HUD pamphlet at: https://www.hud.gov/sites/documents/FHA_SAVEYOURHOME.PDF.