Foreclosure Assistance Programs

The federal government and many lenders or banks are offering many types of foreclosure assistance programs to minimize the amount of foreclosures occurring in the real estate market.  The largest institutions have agreed to foreclosure moratorium but of course, that is only temporary.

For the time being, you will still need to figure out how make your mortgage payments and prevent losing your home.  How to do that?  Well there are a few loss mitigation programs that are available:

Repayment Plan: This program works for those that are experiencing short term financial difficulties.  If you are not able to pay your mortgage for a month or two due to being ill or unexpected but important expenses have come up, this may be the program for you.  Make sure to contact your bank or lender to know the guidelines for applying for this particular assistance.

Short Sale:   This option may be ideal for those already considering themselves desperate and do not have the capacity to pay their home loan.  The home will need to be sold at a discount.  Approval needs to be given by the lender(s) holding the mortgage loan(s) as they are the ones taking the loss on the loan(s).

Loan Modification:  The goal of this program is to make monthly payments for your property easier by negotiating for permanent changes in terms of the loan.  You may consider asking your lender to modify your loan’s payment schedule, the amount of the monthly payments and even the interest rate if it is not equal to today’s market interest rate.  In order to qualify for a mortgage modification, you need to prove to the lender that you can afford the new payment terms.