Where to get help if I’m facing foreclosure?

2..Many people fall behind on their payments and face a fear of foreclosure sales. Some lenders help the homeowners by providing loan modification options while others don’t. Sometimes, the homeowners opt for other options, like the short sale. Foreclosure process requires some time to be completed. When the foreclosure process begins, the house is generally sold in the public auction. There are some ways through which you can get help if you are facing a foreclosure.

Contact Your Lender

Your lender can always provide loan modification help to you. There are various loan modification firms present in the market and you can also contact them. You are required to submit your loan modification application in order to extend the loan period. Based on the application submitted by you, the lender may do a loan modification inspection. After the inspection, the lender will allow or deny the loan modification.

Making Home Affordable Strategy

MHA (Making Home Affordable) strategy is a part of the government’s plans which helps people avoid foreclosures. With this program, homeowners can lower their monthly payments which may help them avoid the foreclosure. You can modify or refinance the loan for lowering the amount of payments.

  • HAMP: Home Affordable Modification Program lowers your monthly payments to 31 percent of your monthly income so that you can afford making your payments on time.
  • PRA: Principal Reduction Alternative program was introduced to help those homeowners whose houses are worth less than what they owe.
  • HARP: Home Affordable Refinance Program is designed to help the homeowners refinance into stable mortgage.

Other Sources

  • You should try to contact a HUD-approved housing counselor. Such a counselor can provide you counseling services at no or very little cost. They provide one-on-one counseling services which help to a great extent.
  • Talk to a lawyer. Some lawyers provide legal information for free which can be very helpful.
  • Be aware of the scams. Avoid the foreclosure companies that give a guarantee that they can help you avoid the foreclosure sale. Never sign on any documents that you are not aware of.
  • You can also get a help from a real estate professional. They can provide you some useful information in a short period of time, so you don’t need to pay them for long.