Government Programs To Stop Foreclosure

Are you in need of government help to stop a foreclosure? Unfortunately many people are in that situation in the current economy. Fortunately there are stop foreclosure programs available for those who seek them out. Remember, it’s up to you to find the help; no one is going to come knocking on your door.

Conduct Research on Your Own

Many people who are facing foreclosure are so stunned they just stand in the middle of the floor and throw their hands in the air. They either don’t know there is anything they can do or are just too frustrated to find out. Do you fall into one of these categories? If so you need to take the time to seek out government programs to stop foreclosure instead of simply accepting what you perceive to be the inevitable. There are enough options available in today’s market that very few homeowners actually have to face losing their homes. Where can you find the information you need? How do you find out about these programs?

  • Library
  • Newspaper
  • Internet
  • Government agencies and municipalities
  • Current lender
  • Friends, relatives and co-workers
  • Financial consultants and legal professionals

These are only some of the possibilities you might choose to find ways to prevent foreclosure. Our website at Credit-Yogi.com can offer more advice on finding government help for a potential foreclosure.

Know More about stop mortgage foreclosure Process

No Exemptions for Federally Insured Mortgages

Don’t make the mistake of thinking you are exempt from Federal Home Loan Mortgage Corporation foreclosures. I overheard a couple talking one day about suing the mortgage company because they swore they were exempt from foreclosure because their mortgage was insured by the government. I’m not sure if they really believed that or planned to use it as a delay tactic, but in either case they would have lost. The government’s share only comes into the picture after the home is sold although some government agencies will pay up front and then take over the mortgage and resale.

Avoid Government Foreclosures

Just like FHLMC, you are not exempt from Federal National Mortgage Association foreclosures. The government will pay off your mortgage as stated in the mortgage documents and may actually file a judgment to collect any deficiency balance from the homeowner. You may also face tax liability for any amount the mortgage company writes off; the IRS sees this as income for the homeowner. While that may seem like a double whammy—losing your home and then having to pay taxes on a portion of it as well—that is unfortunately not the way the IRS sees it. Because you don’t have to repay that money and the lender isn’t going to try to collect from you, it’s money in the bank so to speak.

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Finding Government Programs to Stop Foreclosure

Are you aware there are government programs to stop foreclosure? Many people don’t realize they can obtain help and think they have to pay off their mortgage loan to prevent foreclosure. It doesn’t what type of mortgage loan you have; there are always ways you can avoid foreclosure if you take the time to seek the services.

Finding Help to Stop Foreclosure

One of the most effective programs for preventing foreclosure is home loan modification. This is a fairly new program that was implemented by the government in order to help people facing financial hardships remain in their homes. Finding government help to stop foreclosure is not a difficult process, but it is also not something you should wait until the last minute to research. There are several ways to stop foreclosure that include government programs—the list below includes some of them.

  • Loan modification
  • Refinance
  • Bankruptcy
  • Quit claim deed
  • Short sale
  • Forbearance agreement
  • Loan restructure
  • Mortgage buy back (only pertains to government insured mortgages when the homeowner cannot work an agreement with the lender)

While these are viable options in some cases, they may not work all the time. For instance, your circumstances may cause the VA or FHA to refuse a buy back, so you are on your own with the lender. For more information on finding help from the government to stop foreclosure visit our website at Credit-Yogi.com.

No Exemption for Government Mortgages

Do not make the mistake of thinking there are no Federal Home Loan Mortgage Corporation foreclosures. The only difference between these foreclosures and other foreclosures is the government makes up any difference between the auction price and the loan remaining on the loan. Some lenders may ask for the insured amount up front while others will wait until after the completion of the sale. No, you are not free of obligation if your home sells for less than your balance; FHLMC has the right to place a judgment on you in order to collect the deficiency. In addition you will owe taxes on the portion of the loan that was deficient.

Other Government Foreclosures

Another government agency that is involved in foreclosure is the Federal National Mortgage Association. Federal National Mortgage Association foreclosures may also leave the homeowner with a deficiency balance which will prevent the individual from obtaining another mortgage through the government agency. The same holds true of other agencies such as the VA and the FHA, so it is important to make sure you avoid foreclosure at all costs. You’re hurting not only your credit but also your future ability to obtain a low down payment/low interest government insured mortgage.

Locating Government Programs to Stop Foreclosure

Many people are facing foreclosure under current economic conditions, and unfortunately there mortgage foreclosure consequences extend beyond just losing their homes. For many people the consequences include being unable to find even a home to rent, but many people are able to prevent this from happening by conducting a little research.

Government Mortgages Not Exempt

One mistake you do not want to make is thinking just because you have a government-insured mortgage you don’t have to worry about foreclosure. If you look at the statistics you will find in a good number of Federal Home Loan Mortgage Corporation foreclosures; the only difference is the lenders don’t take a loss on these loans because they are insured by the government. At the same time there may be the possibility of the government agency holding the mortgage on your property if the lender is unwilling to work with you.

Locating Programs to Stop Foreclosure

When you discover you are possibly facing the loss of your home because of foreclosure, you want to begin right away looking for private and government programs to stop foreclosure. The type of mortgage you have and the willingness of your lender to help you look for options will determine how easily you can find a workable solution to your problem. Some of the options that are open to those who are facing foreclosure include the following:

  • Loan modification
  • Refinance
  • Forbearance agreement with lender
  • Payment arrangement with lender
  • Bankruptcy
  • Quit claim deed
  • Short sale
  • In the case of a government mortgage a possible buy back of the mortgage and placement with another lender

For information on other options that may be open to those facing foreclosure visit our website at Credit-Yogi.com.

How to Stop Home Foreclosure

One thing to remember about home foreclosure is in most cases the lender really doesn’t want to foreclose or your home and would much rather work with you toward an equitable solution. However, if you are unwilling or unable to work with the lender there will be little else the lender can do. As soon as you discover you may have a problem making your payments (such as you are getting laid off or will be out of work for an extended time on disability) you need to contact the lender to work out a solution. This gives you more time to do research and see exactly what you need to do.

There are many mortgage foreclosure consequences you may face in addition to the loss of your home. Instead of waiting until the lender notifies you they are foreclosing, look for government programs to stop foreclosure before it even begins. The sooner you can find ways to stop home foreclosure the sooner you can relax. Do not relax too easily because many people have faced Federal Home Loan Mortgage Corporation foreclosures.

How To Save Your Home From Foreclosure With Mortgage Modification

Every day we’re hearing about more homes being foreclosed on all across the U.S. The homeowners who are facing this situation are scared about the possible loss of their homes. If you are one of these folks, try not to worry. There is a great deal of information available about mortgage foreclosure laws and other issues relating to foreclosure, so read on to get it.

  • Ways to Stop Foreclosure
  • Filing Bankruptcy to Keep Your Home
  • Learn about Second Mortgage Foreclosure
  • Contact a Credit Counseling Service such as Credit-yogi.

Ways to Stop Foreclosure

If you’re asking yourself “Can I stop foreclosure?’ the answer is yes. Talk with your lender to see if there’s a way to give you time to make up your missed payments or more time to repay the mortgage. You may want to apply for either a mortgage loan modification or refinance, and if your lender cannot or will not give you one, there are government programs out there to help you.

Filing Bankruptcy to Keep Your Home

You may consider filing for bankruptcy to stop foreclosure on your house. Whether you file Chapter 7 bankruptcy, which gets rid of only unsecured debt and leaves secured debt like a mortgage untouched, or Chapter 13 bankruptcy, which formulates a plan by which you can work out a repayment schedule you can afford, declaring personal bankruptcy can delay and sometimes prevent foreclosure. Chapter 13 is more effective in keeping you in your home because it offers the repayment plan, but Chapter 7 can delay the process long enough to save some money to make up what you owe or to find another place to live.

Learn about Second Mortgage Foreclosure

You want information about 2nd mortgage foreclosure, and here it is. A second mortgagee, or junior mortgagee, has the right to foreclose to protect its interests. While the second mortgagee might pay off the original mortgage to protect its interests, it is not fiscally reasonable to do so since the value of the property often is far less that the amount owed. Although a second mortgagee may come off tough at the beginning if you fall behind on your payments, once you show a sincere inability to make them, the second mortgagee may offer to settle the debt for 10 to 30 cents per dollar. Otherwise, the 2nd mortgagee may offer to devise a loan workout plan with you. Either way, talk to the mortgagee to work something out.

Contact a Credit Counseling Service such as Credit-yogi

The talented people at Credit-yogi have experience in all manner of financial issues, from paying off credit cards to improving your credit score and deciding how to stop foreclosure sale, and they’re happy to share this experience with you. Your initial consultation if free and can be very helpful in answering your questions, so contact them soon.