Many a time homeowners who have bought homes with mortgage payments lose their jobs and cannot make mortgage payments. This is the time they have to contact the lender immediately and discuss their financial problems with him. They should not wait till the last moment when they cannot pay the bills. When they start discussing with your lender he will help them come to some terms to avoid a foreclosure.
There are firms like MHA (Making homes affordable) which provide free counsellors and assistance to help you to remain in your home or to make alternate arrangements and get out of the home. You can visit their website and check what needs to be done. You can also get in touch with State Housing Finance to see if they have programs to help you avoid a foreclosure.
How can MHA (Making Homes Affordable) help Avoid Foreclosure?
MHA has a wide range of strategies to avoid foreclosure and offer loan modification help. They can bring down the monthly payments of mortgage as per the current rates of interest to help homeowners to continue with the monthly payments. Homeowners who cannot afford to make any payments are helped to get out of the situation without foreclosure. They also have facilities for home owners without jobs and others who owe more than the worth of the home.
Ways to Refinance Home Loans for lower payments
Home Affordable Modification Program (HAMP) gets loan modification expert to bring down the amount of the mortgage by 31% of the monthly gross income. This brings down the mortgage payment by 40% which is around $1000. They also have a principal reduction alternative (PRA) which helps people who owe more than the worth of the home by advising the investors and servicers to decrease the amount.
They also have a second modification of lien, if the first mortgage was already modified under HAMP. If they have a second mortgage on the same property, they may be able to avail of principal reduction.
So if you face problems with paying back your mortgage contact MHA to avoid a foreclosure and get a better option.