The government is here to help. How many times have Americans heard that? It just may be true, however, when it comes to stopping foreclosure on your home. As an unstable economy and a formidable real estate market cause many homeowners to surrender their residences to foreclosure, there are government programs to stop those foreclosures or at least limit them.
Identification
Over 2 million Americans face the possibility of losing their homes and properties as a result of inflated interest rates and "balloon" mortgage payments. A deflated housing real estate market is making selling difficult, thereby forcing many homeowners into foreclosure. This "foreclosure crisis" is reminiscent of the Great Depression. In an effort to avoid similar devastation, the federal government is acknowledging its role in this ordeal and reaching out a helping hand in the form of government programs to stop foreclosure.
Types
The U.S. Department of Housing and Urban Development (HUD) offers various government programs to stop foreclosure. These programs include lender incentives, foreclosure counseling and assistance for those experiencing fiscal setbacks because of job loss, military deployment or natural disasters. The Federal Housing Administration (FHA) oversees a new foreclosure prevention initiative known as FHA Secure. This mortgage insurance program is for owners with good credit who have fallen victim to spiraling interest rates. Homeowners are allowed to refinance their homes or property at a more reasonable rate of interest. The government-proposed Project Lifeline calls for temporarily pausing foreclosure proceedings to extend the amount of time owners are given to modify their mortgage loan.
Time Frame
Act promptly to take full advantage of any available U.S. government programs to stop foreclosures. Most programs designed to stave off a foreclosure succeed if taken advantage of sooner rather than later. A good rule of thumb is to notify your lender of your situation before you are more than two months in arrears. Respond promptly to any correspondence from your mortgage lender concerning delinquent payments. Failure to do so may negate any chance of rectifying the situation.
Features
Government programs to avoid foreclosure are an important resource for consumers and businesses. Many of these programs aim at educating borrowers about mortgage loans, particularly their terms and conditions, so they do not overextend themselves financially. Government officials also joined forces with the private sector to establish HOPE NOW. Program participants are counseled on various means to avoid foreclosure and refinance their properties.
Warning
Research any government programs aimed at stopping foreclosures that involve grants or "free loans." The majority of these offers are scams designed to take advantage of vulnerable property owners. Websites, such as Grants.gov, validate the legitimacy of many government grants. Other government programs can be authenticated by visiting the HUD and FHA websites.
