Most notable among proven, reliable pathways to help, the HARP program is great for people who haven’t had a problem keeping up with their mortgage payments in the past.
If you’ve always been current but your home’s decreased value means your lender won’t refinance, this is one way to reduce your monthly payments. It is a very similar program to the Principal Reduction Alternative, though this latter tool was only made available to victims of Fannie Mae and Freddie Mac.
The preceding pair of banks are both notorious for issuing predatory loans they mostly knew people would default on at later dates. These issues insane, inflated profits which made the values of homes all over the country skyrocket, then bomb out when people realized what was happening.
Your own home loan may be issued from one of these fraudsters without your knowledge; this is definitely worth a look, as you may qualify for some special debt reduction programs and not even realize this.
Forbearance to Avoid Home Foreclosure
If you’ve ever owed money to someone before, you’ve probably gone through a similar process to forbearance. This is what happens when someone who has borrowed money cannot afford to repay it as scheduled, but that person is also certain of and can prove their ability to repay at a later date.
The bank holding onto your mortgage may be willing to let a missed payment or two slide if, for example, the tax season is coming up and a large refund check is expected.
For Cases a Bandage Won’t Fix
If you owe a lot of money or you find your mortgage is especially wicked, it’s too late to apply for any assistance with the Emergency Homeowners Loan Program, which would have snatched up bad loans and redistributed funds at new, better rates.
These days, your best bet would be trying to get hooked up with the Hardest Hit Program which offers emergency funds to those in the worst shape.
A Home Preservation Expert would know if you qualify for these and other state-run programs for financial assistance. Unless you’re ready to read through pages and pages of materials and believe it, there is plenty to take in, then you should pass the job on to somebody with a clear, concise knowledge of the game. Get some good representation and put it to work protecting your homeowner’s rights.
The Federal Housing Administration also offers a handful of HAMP loan modifications. These programs have no expiration date. If your mortgage has been bought up, guaranteed, or otherwise insured by this agency, you’re getting help from one of the biggest, best and longest operating networks in the country.
There are hundreds of thousands of FHA homeowners depending on these FHA-HAMP loan modifications to keep them going and as long as the money is there, these people can get lower more affordable payments with plans designed to keep them in their homes.
There are multiple programs and tiers of FHA loan modifications available. These include:
2) Partial Claim
3) Traditional Loan Modification
4) FHA-HAMP loan modification
There can be permanent cures to mortgage issues and while they are tailor-made for each family, homeowners should be looking for ways to increase income or reduce costs for the immediate future.
While exactly a HAMP program; it is a viable alternative when you’ve already qualified for and still need further assistance. In the event your home has become worth less than its original mortgage amount, you may qualify for this short refinance which effectively eliminates a portion of your principal balance and reduces your mortgage principle balance down to a more manageable and fairer amount. Generally this is at the lenders discretion and the overall performance of property values can and will effect their willingness to offer this loan modification or loss mitigation option.
When you think about it, this is very much like the hundreds of billions of dollars that which let large banks continue to do business despite being bankrupt at the end of the year. As long as it keeps you in your home, why sweat the details?
Home Affordable Unemployment Program (UP)
HAMP is helpful but useless to people who are currently without employment. Do not despair; thanks to programs like UP, you can still get help keeping your home even if you don’t have any money coming in. Qualifying for UP is simple and as long as you qualify for unemployment benefits in your state, you can pretty much sign up with UP without a thought.
This is a great alternative to HAMP when you need some kind of immediate help but none is forthcoming from elsewhere. A home loan modification attorney can tell you more about this, including the restrictions and special circumstances which exist for homeowners whose homes were guaranteed by either Fannie Mae or Freddie Mac, two big, bad banks.
The Veterans’ Affairs department will be all too happy to help ailing veterans keep a handle on their homes and their lives with specially designed VA-HAMP services. These are not widely available and members of the general public shouldn’t even ask; this kind of assistance is available only to those who put their lives on the line in active military service.
Unfortunately, like other veterans’ benefits, the wait lines are long, maybe so long you’ll be homeless and suffering from foreclosure by the time your country comes to your aid.