Integrated Family Community Services 3370 South Irving Street, Englewood, CO 80110-1816 Ph: 303-789-0501

Facing Foreclosure? Tips to Prevent That

Nobody wants to foreclose on your family home. The banks won’t tell you this publicly, but they might be losing money if they have too many foreclosed homes on their books. Read the news – many banks already have many foreclosed home on their balance sheet.

Numerous foreclosed homes lower the overall value of the housing market. Plus, bankers want to sell loans, they aren’t experts in real estate. That is why there are many ways for you to prevent foreclosure.

Choosing HUD Programs

First of all, as a homeowner, you have mortgage rights. So, review your mortgage rights. Take good advantage of the following mortgage rights to protect your financial well-being: Written Default Notice and Time to Fix Problem.

The lender must give you a written default notice stating that you have fallen behind on payments. Then, you are given a period of time to fix the problem.

Government programs could be of assistance. Choose from the following HUD foreclosure avoidance programs:

  • Making Home Affordable (MHA)
  • Home Refinance
  • Underwater Mortgages
  • Assistance for Unemployed Homeowners

The government categorizes programs by the homeowner predicament. The MHA Loan program goal is to stabilize the country’s housing market.

The Home Affordable Modification Program (HAMP) could lower your mortgage payments to 31% of your monthly gross (pre-tax) income.

If you have been unable to refinance because your home value has declined, you still might qualify under the Home Affordable Refinance Program (HARP). You can succeed, as long as you have a good lender by your side.

The unemployed might get a “temporary reduction or suspension of mortgage payments for at least twelve months” under the Home Affordable Unemployment Program (UP).

Understanding Your Lender

Be honest with your lender. Explain your financial predicament, explain what assets you have access to, talk about potential experiences or benefits you could bring to the table such as being qualified on disability, being a military veteran, your family’s heritage, or anything else that you feel may help you. Lenders have a variety of financial packages for all sorts of specific situations (FHA loans, USDA loans, Native American Direct Loan, VA loans, etc.) – you can pick the type of loan that will work best for you and your family. Everyone wins when you cooperate. It may be hard or feel uncomfortable, but it will help you in the long run.

People can find some relief by looking into getting a new loan. The lender does not need your house; they want to give you a loan. You can also use your assets, if you can.

No one wins with a foreclosure. The government, financial institutions, and homeowners can work together to find a beneficial solution for all. Follow these tips to prevent foreclosure; and if necessary, you could even hire a lawyer who specializes in preventing foreclosures.

If you and your family are in need of help, please make sure to see how we can help you! You are not alone, and we will do everything we can to support you in your times of need.

Tim Esterdahl

Tim Esterdahl is the editor of IFCS blog. He is a married father of three and enjoys golf in his spare time.

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