Government Programs That Could Help You Save Your House

Government Assistance Programs To Help Save Your House

Couple Getting Governmet Help to Save House from Foreclosure

Most people dream of owning a home; and it is for this reason that many turn to mortgages to push them closer and closer to their dream homes. The fact of the matter is that many people are very careful when choosing a mortgage so as to ensure that they remain consistent with their payments. However, in today’s tough economy, it’s easy to get behind on mortgage payments and risk foreclosure. Foreclosure happens when you fail to pay your mortgage and your house is possessed by the financial institution that offered you the mortgage in the first place.

It can be a terrible thing to lose your house to a foreclosure and especially if the causal agents are situations beyond your control such as a health issue or the loss of your job. A foreclosure can indeed turn into a nightmare for every house owner out there – it is the last thing that anyone would want to experience. There are a number of options are available that can be used to avoid foreclosure. You could either refinance your mortgage or else get some form of loan modification in order to get both your mortgage and finances back on track.

There are several programs created by the federal government for struggling homeowners that can help you stay in your house. They are open to all who need the extra help. While some programs are for people who have made all of their mortgage payments but the value of their home still remains less than the actual loan; others are for home owners who are having issues making their set mortgage payments and are facing foreclosure. Here are the various programs that you can use as a struggling homeowner to avoid foreclosure and save your house in the end:

The Making Home Affordable (MHA) program

The Making Home Affordable (a $75 billion incentive) program was created to keep mortgage interest rates near all-time lows in a bid to get homeowners a new refinancing option for their mortgages. What this meant for home owners is that, having upended home loans, bad credit or other financial hardships, will definitely not disqualify any homeowners from refinancing opportunities. The MHA program gives distressed home owners a chance to easily refinance their mortgages. It not only saves you a lot of money but it also saves your house. Mortgage lenders or any financial institution that helps homeowners refinance through this program usually receives small cash incentives from the government. They thus overlook a person’s bad credit in attempts to refinance which saves the homeowner thousands of dollars.

The Home Affordable Modification Program (HAMP)

This federal government mortgage assistance program was created to help homeowners who can no longer continue paying their mortgages due to hardships such as loss of income or increases in expenses that prove unaffordable. The program’s goal is to help you avoid foreclosure and save your home by giving you a more reasonable and sustainable monthly mortgage payment. If you qualify for the HAMP modification plan, you are entitled to lower interest rates that could save you thousands.

The Home Affordable Refinance Program (HARP)

This government sponsored program was created to help homeowners refinance their home before facing foreclosure or falling behind on their mortgage payments. It allows you to lower your monthly mortgage payments as well as providing a way for you to stay in your home and avoid foreclosure. In order for you to qualify for this program; you must not be in foreclosure and must have a good payment history.

The Home Affordable Foreclosure Program (HAFA)

This is a deed-in-lieu foreclosure or a short sale. Its main benefit is that as a homeowner, you will not be held responsible anymore for the difference between the amount the home sells for and the amount owed on the mortgage. As a homeowner, you will also receive $3,000 for relocation assistance upon a successful deed-in-lieu or short sale. The short sale agreement allows the homeowner or borrower a minimum of 120 days I which to sell the home. Upon a successful sale, the mortgage lender should fully release the borrower of any claims and debt against the home.

The Federal Housing Administration (FHA) program

The FHA Secure is a housing program created by the federal government that aims at helping borrowers who are at default with their mortgage payments.

Fannie Mae’s HomePath program

The Fannie Mae HomePath program allows buyers to buy Fannie Mae-owned homes and offers simpler mortgage requirements than is offered by a traditional loan.

There are two distinct programs available through HomePath:

The HomePath Mortgage – it resembles a traditional home loan offered by banks. It is usually for buyers who are acquiring the foreclosed property to be their primary residence (homes which are generally move-in ready).

The HomePath Renovation Mortgage – it is aimed at buyers buying a home in need of repair such as the real estate investors who are into the fix-and-flip business.

Fannie Mae Homepath program will also be launching a new home loan program called HomeReady. It will be available to low-income borrowers as selected by the U.S. Census Bureau.

Freddie Mac’s Targeted Affordable Housing (TAH) Program

The Freddie Mac Targeted Affordable Housing (TAH) Program helps housing finance agencies afford low-rate mortgages to first-time homebuyers; additionally, the program provides financing for the building and repair of affordable multifamily rental properties by investors.

The Veterans Affairs Program (VA)

Veteran Affairs provides a home loan security benefit and other housing related programs to help veterans, servicemembers and qualified surviving spouses become homeowners. Veteran Affairs loans are usually provided by private lenders (banks and mortgage companies) to help you repair, buy, retain or even build a home for your own personal occupancy. Veteran Affairs warrants a portion of the loan, which prompts the lender to provide you with more favorable loan terms.

The U.S. Department of Agriculture (USDA) program

The USDA housing program provides rural Americans with homeownership, home renovation and home repair opportunities. USDA provides housing developers with grants and loans via public and nonprofit organizations to construct and refurbish rural multi-family housing units.

Principal Reduction Alternative (PRA) program:

This program was created to help homeowners whose homes are worth way less than they owe by prompting investors and servicers to reduce the amount you owe on your home.

Second Lien Modification Program (2MP):

This program was created to help homeowners whose first mortgage was permanently modified under the Home Affordable Modification Program (HAMP) and that have a second mortgage on the same property. This may qualify you to get a reduction on the principal or a modification of your second mortgage under 2MP.

FHA Second Lien Program (FHA2LP):

If you have a second mortgage on the same property and it happens that the lender of your first mortgage agrees to take part in the Federal Housing Administration (FHA) Short Refinance, you may be eligible for the reduction or total elimination of your second mortgage. If your second mortgage lender agrees to take part in the Federal Housing Administration (FHA) Short Refinance, your total mortgage debt after the refinance cannot go beyond 115% of the present value of your home.

Home Affordable Unemployment Program (UP):

This is for the unemployed homeowner facing difficulties in making mortgage payments. Under this program, you get a temporary suspension of mortgage payments for at least one year as you seek re-employment or a temporary reduction of your mortgage payment.

The Emergency Homeowners’ Loan Program (EHLP):

This program was created to help homeowners who experienced a reduction or loss of revenue and faced foreclosure because of unplanned unemployment/underemployment/medical emergency. The program was supposed to complement the HFF (Hardest Hit Fund) by supporting the states that were not covered under the Hardest Hit Fund.

The FHA Special Forbearance program:

This is for homeowners who experience difficulty paying their mortgage installments as a result of losing their source of income. If you qualify for the program, your lender may offer you a suspended or reduced mortgage payment for up to one year.

As you can see, there are plenty of government-backed programs that could potentially save you from loosing your home. Unfortunately, not everybody qualifies and sometimes it is just too late in the the foreclosure process for the government to help you out. If you are about to lose your house, we could be able to help bring your mortgage up to date and work out a solution where we buy your house for cash and you walk out with money in your pocket (and without a nasty foreclosure entry on your record).

Comments

  • Estella Cuni

    Excellent post! Thank youu for writing. This is an critical topic to confer and
    is one of my most favorite posts from you.
    Shared, thank you.

  • I would like to do a Modification to save my home

  • Nancy Roussell

    Need to stop foreclosure and auction of said property in August.I have a first and second mortgage.Property is located at 230 Prospect Street in Athol,Massachusetts and needs a total renovation

  • Nancy Roussell

    I am a widow and have guardianship of my 2 oldest granddaughters and there mom lives with me. She is in Disability. I have a 2 family home . Right now it needs to be refinanced and also needs to have major repair to be liveable. Is there a program that can stop the foreclosure and give my family and myself our home back.Sincerly,Nancy Roussell I live in Athol,Mass.01331

  • LINDA CLARK

    HELP ME GET A PRA PROGRAM PLSEASE CALL ME OR PUT ME IN
    TOUCH WITH SOMEONE THAT CAN HELP

  • Patricia Ann Gonzalez

    I signed up with a modification company to help me save my house now they are being suided buy federal commission fare…I need help they haven’t done anything but take my money… please I don’t want to lose my house.

  • Stuart & Pamela

    Me & my wife feels like we been jerk around on our mortgage company. We were making our payments on time & trying to make a new loan, but our credit score is bad. So now they want take our new home away , because of a balloon loan. We only owe 18,000. Help us please our last day is march 13, 2018

    • What happened to your home. How did you get someone to help you? Hope it worked out for you. I need help saving my home. Will be on streets soon.

    • Susanne Ignazito

      I need help ASAP saving my home. I wanted to get unfo on EHLP. I need to act now, do not have much time.

  • Kim Simmons

    I owe more than home is worth and facing foreclosure. I am trying to have loan reinstatd so i can make payments.

  • Rita Cuesta

    I am a 64 year old female single and interested in a program I heard of where the government will purchase my home but will allow me to live in it until I die. I have no one to leave my home to and I want to enjoy the money that I can get for it. Can you put me in touch with correct governant program?

  • Brenda Emerson

    I am a single mother of two and I’m behind three months on my mortgage. I do work but I’m not getting enough hours to keep up with my mortgage.plesse put me with someone that can help save our home

  • Help me to save my house! I’m home for 6 months because of work injury, I’m about to lose my house , I need financial support to keep my house !!

    • Carolyn ford

      I need help fast

      • I need help saving my home. I’ve been there for 60 years. Can someone help me? I am about to be homeless. I can pay back. Please someone help me.

  • Nicole castiblanco

    I want to save my home
    Please help me I did loan modification but I miss the first payment because my daughter has a big car accident and I’m a single mom mo I use that money to help my daughter please help me I don’t want to loose my house I Been in this house for 18 years

  • Johnny Smith

    We are loosing our home.i dont know what to do ..my wife got sick i got a pay cut.have not payed a house payment in 6 month.

  • I would like to hold on to my house ever since my husband passed I have been struggling to hold on to my house I’m retirer and don’t want to lose my house can you inroll me in a program that can help me keep my house some government program please!!!

  • Lea de Guzman

    I need help to keep my house. My husband and I bought the house Dec. 2017. We got separated Jan 2019, he cheated, I kicked him out. He filed for divorce Nov 2019. I’m a stay home mom for 11 years. We have 3 kids. Divorce is final June 7 2019. All the utilities, car that I’m using. House. All the bills under his name. All the bills late 4 months. One of the contract in the court that we signed. He needs to make the bills current. Which is he did not do anything. The house is 4 months late. The mortgage said I need to pay the whole thing. My name is not on the house. I recie the money from child and spousal support. I’m staring paying utilities so I can put it under my name. He did not make utilities current, like what the contract said. Please somebody, help me. What can I do? Thank you

  • Maria P McNeil

    My parents are on the verge of losing their home. Father’s is disabled and mother is caregiver. Mortgage is more than the house is worth at this pointl

  • Jimmy kellet

    My name is Jimmy Keller I’m losing my home due to property taxes. My homes will be for closed with in a couple of days.!! I’ve tried almost every thing you possibly could imagine I could that’s out there. Both of my parents are deceased. To make a long story short I’ve lived in this house for 51 years and fallen back on the taxes, unable to get a loan ect. Because it red tagged. It is killing me that that I’m about to lose my dads house he worked so hard for he is was in the marine corp and work for the the LA Times. I need help plz I have a job I just need some one to help me save my home it’s in default 30,000 I’m a hard working man and will do practically do any thing for some one to help me ASAP I ran out of option except for screaming out to the public for help . My phone number is 626-469-9603 I reside for a about one more week at 1043 Sandia ave La Puente CA 91746 plz help me save my home..Jimmy keller

  • Erick Fenderson

    I NEED A FORBEARRANCE TO SAVE MY HOME. PLEASE HELP ME. I HAVE BEEN SCAMMED OUT OF MONEY AND I JUST NEED ABOUT 3 MONTHS TO GET MY MORTGAGE BACK TO CURRENT

  • Susanne Ignazito

    I need help saving my home ASAP. I would like more info on the EHLP program. Urgent not much time left.

  • I’m 69 retired and stoped making payment s a while ago of a loan that I got with PHH bank I think the best thing for me is walk away give the house to the bank but I don’t know if this will have consequences and the bank will require money from me

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