The economy has thrown a large number of individuals into difficult financial times. Many of these people are home owners with a mortgage that they suddenly are no longer able to afford through no fault of their own. Some of the common reasons people develop problems include unemployment, death, divorce, and illness which leads to the need for help in foreclosure prevention.
In an effort to prevent the housing market from falling further into the abyss, there are a number of different programs and resources that have been established to help people with the housing issues. Along with these opportunities, there has also been a surge in predators offering scams to vulnerable people in desperate need. For this reason, always research the group that is being worked with in these efforts.
President Obama implemented the Making Home Affordable Program, or MHA, which offers several options to people needing assistance with their mortgage payments. It provides the opportunity to lower the monthly payments or refinance for a loan at a lower rate. This program also addresses the high unemployment by offering special arrangements for these individuals. Further information can easily be obtained regarding the MHA program and the many benefits it offers.
A number of additional free counseling services have been created to aid people in determining the programs they qualify for. One such group is called the Homeowner's HOPE, provided by the Homeownership Preservation Foundation. There are many more groups can that offer similar services to help prevent foreclosure at no expense to the distressed borrower.
Mortgage lenders are more willing to work with borrowers than ever before. Reality is that no one wins when a home is foreclosed on. Many loan modifications have been implemented for use by individuals who are experiencing financial hardship.
It is very common for people to avoid handling financial difficulties, however it is important to immediately contact the lender to make arrangements at the first sign of problems. By taking this step people show a good faith willingness to correct the issue that has developed. This also gives more opportunity to make reasonable adjustments to the loan requirements before having more serious issues develop.
Many modifications that can be implemented by lenders include lower or no payments for a specified time, this is typically called forbearance. There is also the possibility of establishing a repayment plan which typically requires the borrower to pay a lump sum at a future date or an additional sum attached to the standard mortgage payment. If a borrower is waiting for a payout, such as a settlement, a lender may offer a temporary indulgence until the payment is received.
Individuals who have reached a point that homeownership is no longer feasible, and are seeking a way to get out of their home, additional programs have been created to address these issues as well. Tax cuts have also been implemented for borrowers who have experienced hardship in an effort to stabilize the market and assist them in keeping their home. Help is available to people who are looking for foreclosure prevention.