Federal and state governments, along with the lending community, have been working together in an unprecedented manner to solve the mortgage crisis. Lenders have become more flexible than ever in offering solutions to borrowers who are at risk of delinquency, default or foreclosure. There are an unprecedented number of government programs geared toward keeping you in your home, maintaining property values, and preserving your wealth and credit. Each servicer/lender has its own guidelines for helping homeowners avoid foreclosure. Many are participating in government incentive programs that promote loan modifications. You may find out more by visiting the lender plans and assistance pages at ForeclosureIQ.com or by contacting your lender or servicer directly.
On the federal level, the Obama Administration has introduced the Homeowner Affordability and Stability plan. It’s a government-subsidized loan modification program geared to bring mortgage payments down to 31 percent of the borrower’s income for qualified homeowners. In addition, the Federal Housing Administration , FHA, the Veterans Administration, VA, and other mortgagees are also offering special refinancing guidelines.
On the state level, there are initiatives like the State Foreclosure Prevention Working Group, which is a joint initiative of 37 states. On the individual level, some states like New York, are actively promoting refinancing of home loans through special programs like New York’s “Keep the Dream” program.
While much is being done by both the public and private sectors, it’s always important to make sure you’re dealing with a legitimate organization. When you hear about a government program, do some research to make sure that the government really is behind the program. There are mortgage businesses claiming to be run by the government that are not. As with any financial transaction, verify that the people with whom you are dealing are who they say they are.
Lenders have become more flexible than ever in offering solutions to borrowers who are at risk of delinquency, default or foreclosure.
Each servicer/lender has its own guidelines for helping homeowners to avoid foreclosure, and many are participating in government incentive programs that promote loan modifications. For your convenience, we’ve posted information about the top home loan servicers here. If yours isn’t listed, please call your servicer directly.