Emergency Government Aid for Homeowners
Do you need financial help paying mortgage payments that are behind? If so, you have some options to keep in mind that could help you save your home and avoid foreclosure, all in one. Given the current state of the economy, many people are defaulting with their home loans. If you are in this type of situation, you will have some options at your disposal that may help you out. In this article, we’ll explore the ways you can get emergency aid when you need it, both on your own and with the help of some government assistant programs. Let’s dig into this in more detail.
There are some government programs that offer financial help paying mortgage payments that are behind, or help to avoid foreclosure. Since you cannot miss many payments before you will lose your house, you must take action as soon as possible. Here are some agencies you may want to check out.
HUD: Contact the Department of Housing and Urban Development (HUD) and work with their foreclosure prevention specialists. They may offer some assistance with subsidies and grants, to assist you in keeping your house.
Making Home Affordable: This government program is one to consider if you need financial help paying mortgage payments. If you have fallen behind, you may be able to qualify for a home refinance loan or loan modification.
Local/State Programs: It will really depend on where you live. The first place you will need to look is your local courthouse. Go there and go to the department of housing office. They will be able to help you apply for various programs to assist you.
There are a few charities that will help you if you fall behind on your payments and need financial help paying your mortgage. Some are nationally recognized, but you may have to look locally as well.
Salvation Army: They offer a one-time rent or home loan assistance payment. Funds are limited each year, so you will need to apply as soon as possible for aid.
Churches: There are some churches that will help their members pay bills, including home loans. You won’t know if they are willing to offer you aid until you ask.
About Your Mortgage
What type of home loan do you have? If you have fallen behind on your payments, you may want to explore some self-help options for making good on the terms of your loan. Here are some things you will want to consider as you explore your options.
ARM: An adjustable rate mortgage (ARM) has variable interest rates that fluctuate over time. This could be a good thing if you only require temporary aid, and interest rates are very low. If you need help making your payments that behind, this is a good option. Of course, many people find themselves in this situation, looking for aid, when they have an ARM and rates increase.
Loan Modification: You may be able to modify your loan to suit your current needs. It’s an option you will need to explore with your lender. Call your bank and see what they are willing to do.
Fixed Rate: Just as it implies, the interest rate is fixed over a certain term, often 15-30 years. If you are already 5-10 years in, taking out a new home loan can lower the payments enough so you won’t fall behind. This is a good way to help yourself financially with mortgage payments. This is really nothing more than a refi.
Avoiding Home Foreclosure
There are some ways beyond those already mentioned that you can avoid home foreclosure if you have fallen behind on your mortgage payments. Financial help to pay your mortgage may not always be an option unless you work hard to keep your home first.
Communicating With Your lender: First up, you need to communicate with your lender. This works best if you approach the bank right away. Let them know if you are having financial troubles and ask them what they can offer for help. The lender could surprise you in their willingness to help you out with the payments.
Payment Forbearance: This will depend on your situation. What will change in the future, so you can make your regularly scheduled payments and keep current? Is the situation permanent? If so, a short term forbearance will not offer much help as you try to make mortgage payments in the future.
Repayment Plans: Your lender may be willing to let the late payments slide, giving you a certain amount of time to make good on them. This is a good way to find financial help paying mortgage payments that are behind.
Selling Your Home
In some cases, selling your home could be your only real option. Of course, many borrowers find they have difficulty with this, especially with a poor housing market and a loan that isn’t current. Here are some things you may want to keep in mind.
Short Sale: What is a short sale? This is basically an agreement between the borrower and the lender that allows the borrower to sell the home for less than currently owed. This helps the borrower avoid foreclosure of their home and lets the bank get their property back without a long process.
Deed in Lieu of Foreclosure: Essentially, you give the lender the title to your own and move out. You will lose your home, but the damage to your credit rating is not quite as severe and you will no longer have to make the payments, freeing you up to look for a cheaper home or a place to rent for less money each month. It’s a good option to keep in mind.
Regular Sale: If you cannot refinance and you don’t owe very much on the property, you may want to simply price the property to sell quickly. You could even contact a service that buys houses from homeowners at a reduced price, offering a very quick transaction.
If you need financial help paying mortgage payments that are behind, you now know what some of your options are.