Phoenix, AZ -- (ReleaseWire) -- 03/10/2014 -- What to Do When Facing Foreclosure
Homeowners living under the threat of losing their homes will try anything to keep them, including asking their original lender for help. Because financers are insured against any loss if a property owner defaults on his mortgage, it is not beneficial to them to assist their borrowers. When the Obama HAMP plan went into effect, many people were able to access it and stop the foreclosure process. Credit-yogi.com is here to offer their knowledge of other methods a homeowner can utilize to prevent foreclosure, including:
- Making Home Affordable
- Dept. of Housing & Urban Development
- Short-term Forbearance
- Engage in a Short Sale
The MHA Program
When it occurs to one that “My bank keeps avoiding my mortgage modification request,” it’s time to look into other possibilities. One of them is the Making Home Affordable program, developed by the Obama Administration in 2008. Comprised of several different financial actions such as loan modification (changes to the loan) and refinancing it (paying off the original loan and crafting a new one that has better terms), MHA is easy to access and can help stop a foreclosure. Check with any affiliated lender for more details.
HUD can Help
The Department of Housing and Urban Development (HUD) also utilizes parts of the Making Home Affordable program. HUD urges financers to lower a struggling homeowner’s principal to reduce the overall mortgage payment. It can lead one to some of the best loan modification companies outside of the government, and it provides financial counseling to those in need of it – at no cost. There are plans for unemployed homeowners and for those who are underwater in their mortgage. For more information, Credit-yogi.com suggests going to HUD’s website.
“My lender keeps avoiding my mortgage modification request.” If this is the situation for anyone facing foreclosure, he should look into forbearance. This means that one can obtain a short-term reduction in the payment amount of his mortgage. He’ll still have to catch up any past due payments and pay any interest owed, but this process can give him a chance to halt a foreclosure procedure while he continues to earn money so he can get totally out of arrearage and become up to date with his payments.
Short Sell the House
This is the most sensible way to get out from under a past due mortgage and out of foreclosure. Prior to 2008, when the Obama HAMP plan went into effect, a short sale, which is selling the home, paying off the mortgage, and leaving the house, was a good choice for many homeowners. While this may not be the best choice for all people in this position, it can be a great solution for many.
Established in 1999, Credit-yogi.com has relentlessly pursued one goal – to give consumers the best, most accurate responses to their fiscal questions. From the number of repeat visitors, it is clear that the site has succeeded in this endeavor. For a free preliminary conference, dial 866-964-9644, any time.