THE HOUSING COUNSELING AGENCY
25 YEARS OF EXCELLENCE
How To Avoid Foreclosure?
Our counselors specialize in foreclosure prevention counseling. To learn more about how to avoid foreclosure please visit our foreclosure prevention website
www.makingyourhomeaffordable.org
www.makingyourhomeaffordable.org
Know Your Options:
There are many options for homeowners who are struggling with their mortgage payments. Below is just an overview of some options that may be available to you.
A new loan — with new terms, interest rates and monthly payments — that completely replaces your current mortgage. Even if your home value has decreased, you may be able to refinance your loan as part of the government’s Home Affordable Refinance Program (HARP). Refinance benefits:
- Make your payment more affordable by lowering your interest rate or adjusting the terms of your loan
- No negative impact to credit score
- Stay in your home and avoid foreclosure
An agreement between you and your mortgage company that lets you pay the past due amount on your mortgage payments over a specified time period in order to bring your mortgage up to date. Repayment plan benefits:
- Catch up on your past due payments over an extended period of time
- Less damaging to your credit score than a foreclosure
- Stay in your home and avoid foreclosure
An offer by your mortgage company to temporarily suspend or reduce your monthly mortgage payments for a specified period of time. Forbearance benefits:
- Have time to improve your financial situation and get back on your feet
- Less damaging to your credit score than a foreclosure
- Stay in your home and avoid foreclosure
An agreement between you and your mortgage company to change the original terms of your mortgage, such as payment amount, length of loan, etc. You may be eligible for the government’s Home Affordable Modification Program (HAMP) created to help struggling homeowners. Modification benefits:
- May reduce your monthly mortgage payments to a more affordable amount
- Less damaging to your credit score than a foreclosure
- Stay in your home and avoid foreclosure
A short sale is the sale of a home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off your mortgage balance with the proceeds. Short sale benefits:
- Eliminate or reduce your mortgage debt
- Assistance for relocation may be available
- May be able to recover your credit score — and get another mortgage — faster than if you went through foreclosure
A new program that allows you to temporarily lease your home. You first transfer the ownership of your home to the mortgage company (called a Deed-in-Lieu of Foreclosure, see below) in exchange for release from your mortgage loan and payments. You can then rent the property back — at an affordable rate — and remain in the home as a tenant. Deed-for-Lease benefits:
- Stay in your home and neighborhood — no need to move or relocate
- May be able to recover your credit score faster than if you went through foreclosure
- Assistance for relocation may be available at the end of your lease
- Avoid foreclosure
With a Deed-in-Lieu of Foreclosure (DIL), transfer the ownership of your property to your mortgage company in exchange for a release from your mortgage loan and payments. DIL benefits:
- Eliminate or reduce your mortgage debt
- May be eligible for relocation assistance
- May be able to recover your credit score — and get another mortgage — faster than if you went through foreclosure
- Home maintenance and financial management for homeowners
- Escrow funds
- Refinancing
- Home Equity
- How to specify and bid construction cost
- Foreclosure process by state
- Foreclosure rescue scams
NID-HCA is a diverse network of advocacy groups and individuals, organizations, housing counselors, real estate professionals, community groups, civic organizations and faith-based organizations committed to ensuring fair housing opportunities for all in urban/minority communities throughout the country. As an advocacy, communications, education and resource network, NID-HCA works to provide its partners and the communities they serve with information to assist them in their advocacy efforts to address issues ranging from increasing access to quality housing and mortgage products and eliminating housing disparities.
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