If you think you’re facing foreclosure on your home you may be able to avoid foreclosure by taking advantage of a homeowner program established by the federal government.
If you’re falling behind in your mortgage payments you first step is to contact your mortgage lender without haste. Many lenders will renegotiate your terms so you don’t even have to take additional steps, it saves them money to keep you on track, even if it’s an altered track.
If you need additional help the federal government has established a program called HOPE for Homeowners. Under the HOPE program the Federal Housing Authority will back adjustable rate mortgages that appear to be headed toward failure. In this situation a HOPE representative will speak to your lender for you to arrange a loan write down and then a new mortgage will be established. But its not free money, by being a part of the HOPE program you’re agreeing to share future home equity with the federal government.
To qualify for HOPE for Homeowners you have to fully document your income, fully occupy your property (this means investment property doesn’t count), and your housing costs after refinancing have to be less than 31% of your income.