5 Foreclosure Help Government Programs

Rethinking home ownership and foreclosure help

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According to Mortgage Bankers Association, 250,000 families every three months enter foreclosure. However, many Americans do not know how to get foreclosure help and advice. Either they feel embarrassed or felt humiliated, or simply felt they have lost hope. There are actually many ways to get help in keeping your home. Government foreclosure help has been enacted to help save the homeowner and the housing market. Among the government programs available to you are:

1. The Availability and Stability Program

This foreclosure help program was designed to help homeowners who are no longer capable of keeping up with their mortgage payments due to loss of job, or were forced to take a less-paying job thereby hindering their ability to make the required mortgage payments.

2. The Fannie Mae Program

This program is much like the Affordability and Stability Program. However, in order to qualify for this program, Fannie Mae must be the holder of your mortgage and you must be employed. This program allows homeowners to make monthly payments more affordable through lowered interest rates at the same time extending the duration of payments.

3. The Loan Modification Program

This is one of the government foreclosure help programs that was put in place by Congress to help homeowners facing foreclosure. However, each lender has their own rules that govern your qualification to the program. Lenders also have standards set by the government that they must adhere to.

4. Refinancing Program

Refinancing is occasionally a good option especially if your mortgage carries a high interest rate. Reducing your interest rate by taking on a different type of mortgage may help you lower your payments to a manageable level. Refinancing can be expensive, though, as you may need to pay closing costs, points, and other fees. Also, be very wary about refinancing as you may end up with higher rates that you can’t pay and still end up in foreclosure.

5. Bankruptcy Programs

Depending on your situation, bankruptcy may be your only option to keep your home.

Other than personal tragedies, there are a few things that are as stressful and unnerving as going through a foreclosure. The government provides different forms of foreclosure help so if you’re facing serious home foreclosure, seek help immediately. Contact your lender right away, don’t wait for a letter from the bank, and never ignore their correspondence. Most of all, make your mortgage payment your top priority.

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