Government Program to Help Mortgages
- Most government programs require you to speak with a U.S. Department of Housing and Urban Development-approved nonprofit housing counseling agency. You do not have to be in trouble to speak with one. They provide help for anyone in the home-buying or home-owning process. If you are facing foreclosure, or believe you will be soon, they must provide you with free foreclosure prevention counseling. They will review your situation and help you find the right solution for your problems. Call HUD at 800-569-4287 to find a housing counseling agency near you.
- The Obama Administration created the Making Home Affordable programs. These programs empowered Fannie Mae and Freddie Mac to offer refinancing for homeowners whose loan balances exceed the home's value. You do not have to have a loan that is higher than your home's value to qualify. Anyone with a Fannie Mae- or Freddie Mac-owned loan, who has not had any payments more than 30-days late in the past 12 months, may qualify. Contact your current loan servicer (the company you make your loan payments to) and ask for a quote.
- If you fell behind on your mortgage, a modification may be the answer. Fannie Mae and Freddie Mac authorized their servicers to modify the loan amount, loan terms, loan interest rate or a combination thereof to provide an affordable mortgage payment for their borrowers. You must apply with the servicer, provide them proof of your income and successfully complete the trial process. Once you do, your loan is permanently modified. First call a HUD-approved counseling agency, and then speak with your servicer.
- The government also provides foreclosure alternatives. If you do not qualify for a refinance or modification and foreclosure is inevitable, there are programs to help you as well. A deed-in-lieu of foreclosure is when you voluntarily give the title back to your mortgage company. This program provides relocation assistance. In addition, you may short-sale your home (sell it for less than the full balance owed) and receive relocation assistance as well. Contact a nonprofit housing counselor and your servicer for details and to see if you qualify.
