Can You Get Grants To Avoid Foreclosure?
Your home is probably more than a mere shelter for you and your loved ones. The emotional cost of such an asset is much more than its financial cost. However, when there is financial hardship, paying the mortgage on time is very tough. There are many reasons people cannot pay the mortgage on time and end up facing foreclosure.
- Loss of job
- An accident or illness prevents working
- Death of a loved one
- Any other major debt
Chances of your losing your house through foreclosure are high. Another big disadvantage is that your credit rating will take a severe beating due to the foreclosure process. It will be like a black mark on your credit history and will take years to get rid of. This is the reason why it is important to consider all programs to help homeowners.
How To Avoid Foreclosure?
- Consider a short sale of your property. Contact your lender and convince him even if he has initiated the foreclosure proceedings. You can continue to look for a buyer and try to avoid foreclosure.
- Some people file for bankruptcy. It can stop the foreclosure process. Keep in mind that this is only a last resort, and it has its problems. Take advice from professionals before you take this step.
- When you sign the deed of your home over to the bank, it is called a deed in lieu of foreclosure. It hurts your credit score. It is difficult to get approval because of the many complications this process entails.
- If you manage to get a tenant who will become a buyer after he has the required amount, it is called a lease option.
- You can try to get HUD approved government grants for foreclosure prevention of your property. This is a good option for truly deserving people who are facing financial problems.
- Charities and NGOs can help financially or assist in other ways to help a homeowner avoid foreclosure.
Government Help and Grants
Government assistance for homeowners who are struggling to pay their mortgage is possible in some cases. There are some government programs which you can search for. However, it will also depend on the state governments and their programs. Contacting Housing and Urban Development or HUD office in your area and getting information directly is the best thing to do.
How To Get Help?
Some unforeseen trouble can lead to missing out on mortgage payments and cause a lot of anxiety. Most lenders will want to initiate a foreclosing procedure after 2 or 3 missed payments. You may be tempted to ignore the problem and pretend that everything is fine. However, by doing this, you could be risking your house. If you find yourself in a tough spot with foreclosure looming ahead, look for government resources to help you. They can help you and stop foreclosure by offering:
- Financial help
- Legal information
Getting the right information is the first step when it comes to any legal process. Government programs help with useful information, offer alternatives, warn you against scams, etc. They also help with mediation and negotiation to enable homeowners to either stay in their homes or have more reasonable loan modifications.
At every level of governance, state, federal, or local, foreclosure assistance is available in different ways. With the help of the housing and HUD website department, any homeowner can gather a lot of important information to make the right decision. They will help in genuine cases by offering housing finance and helping homeowners.
There are charities and NGOs which help people with mortgage payments. They have their criteria and eligibility requirements. They are especially helpful during times of major calamities, which can result in job losses or deaths. They may assist you directly or refer you to other organizations and may even mediate with the mortgage lender.
Some Grants To Avoid Foreclosure
- Keep Your Home California: this is for California residents who are on unemployment benefits. A homeowner can get up to 3000 dollars every month with a limit of 54000 dollars over a year and a half period.
- HUD Unemployment Option: The Department ofHousing and Urban Development gives grants loans to unemployed homeowners. This Federal Housing Administration loan is called the Home Affordable Unemployment Program. It is not a give-away but helps with the suspension of mortgage payments up to 12 months.
- Mortgage Assistance Loan Program: it helps homeowners facing foreclosure with a silent loan. The maximum limit is 50000 dollars. A silent loan means that no interest rates are charged on this amount. They hold a lien on the house, and the loan can be repaid after the house’s sale.
Apart from these, there are many more programs at different levels offering grants or help in some way with mortgage payments.
North Carolina has a Foreclosure Prevention Fund for homeowners struggling to pay mortgages due to temporary financial problems.
New York State has a Foreclosure Relief Unit for homeowners at risk of foreclosure.
Get Educated And Benefit
When it comes to an impending foreclosure, time, and information are of the essence. Take the help of a professional who can guide you through this tough process. With the right information about various grants, many homeowners avoid foreclosure, and so could you.