Here are some tips from the Federal Housing Authority on how to “Save Your Home”
Help! I Can’t Make My Mortgage Payment.
What Should I Do?
1. Contact your lender right away. You can find a contact number on your mortgage statement. When you call, be prepared to explain:
-Why you are unable to make your payment.
-Whether the problem is temporary or permanent.
-Details about your income, expenses, and other assets like cash in the bank.
2. If you are uncomfortable talking to your lender, a HUD-approved housing counseling agency can help you understand your options. These services are free of charge.
3. Open all of the mail you receive from your lender. It contains valuable information about repayment options. Later mail may have important legal notices. Failing to read the mail will not be an excuse in foreclosure court!
4. Look for ways to increase the amount you have available to make your mortgage payments. Can you cancel cable TV, pack lunches, or get a part-time job? While these actions may not replace all of your lost income, they send a strong message to your lender that you are serious about keeping your home.
What Options Will Help Me Keep My Home?
If you want to keep your home and your income problem is temporary, talk to your lendera bout these FHA workout plans. While these options listed here are for borrowers with FHA-insured loans, most lenders offer similar workout plans designed to help you keep your home.
Special Forbearance. Your lender may provide for a temporary reduction or suspension of your payments to allow you time to overcome the problem that reduced your income.
Mortgage Modification. A modification is a permanent change to your loan through which the overdue payments may be added to your loan balance, the interest rate may be changed or the number of years you have to pay off the loan may be extended.
Partial Claim. This is a one-time loan from the FHA insurance fund to bring your mortgage current. The loan is interest free and does not need to be repaid until you pay off your first motgage or sell your house. However, if you have a conventional loan, ask your lender if they offer an “advance claim”.
FHA-Home Affordable Modification Program (FHA-HAMP). This option combines an enhanced partial claim with a loan modification. Under the FHA-HAMP, the partial claim loan from FHA will not only include any amounts necessary to bring your mortgage current but may also include an amount to reduce your loan by up to 30%.
What Options Do I Have If I Can’t Keep My Home?
Pre-Foreclosure Sale. With your lender’s permission you can offer your house for sale and sell it at fair market value even if the amount you receive from the sale is less than the amount you owe.
Deed-in-Lieu of Foreclosure. As a last resort, you may be able to voluntarily give your property back to your lender. If you leave the property clean and undamaged you may be eligible to receive relocation expenses.
For more information you can visit the Federal Housing Administration website.
To speak with a certified agent who specializes in foreclosures, short sales and distressed properties, .