Avoiding foreclosure

Financial problems put your mortgage in danger, but there are means to avoid foreclosure before it's too late. If you are one of the homeowners facing this tough problem, giving up your home is not the only option. Here are some ways to keep your estate.

Inform the Lender

Talking to your lender about your difficulty in paying your monthly mortgage is the first thing you need to do. Do not wait for a Notice of Default to be served. Express your concerns and be straightforward about the reasons behind your financial plight. Lending institutions appreciate it when their borrowers are being truthful. Most often they may offer payment alternatives that you can afford. In addition, lenders have "loan workout options" in hand that you can apply. Ask them which one works best for your situation.

Consult a Housing Counselor

Do not deal the problem all by yourself. Serious situations like foreclosure require an expert. Contact and ask for advice with a government-approved housing counseling agency in your locality. These agencies are available to give homeowners assistance to avoid foreclosure. Make sure that the agency you are consulting with is certified by the Department of Housing and Urban Development (HUD). You can check HUD's website for the lists.

Seek Help from HUD

If your mortgage loan is FHA-insured, a fund to suffice your delinquent payments can be obtained by the lender from the FHA insurance pool. After it's paid off, your payment schedule will bounce back to its current status. Talk this option to your lending bank. If in case the lender does not cooperate, ask for assistance from the HUD's National Servicing Center. Certain guidelines and regulations for FHA insured-loans are established that lenders should adhere. Therefore, they cannot deny you of this right. The center works closely with FHA homeowners and lenders to find foreclosure protection remedies.

Consider a Home Loan Refinance Option

Refinancing your home loan is another foreclosure prevention alternative. The federal government has created a comprehensive housing program called "Making Home Affordable Program." It is a long-term program that helps homeowners struggling to keep their current home to refinance or modify their mortgage loans. Visit the program's website to find out whether you are eligible to apply for a refinance or modification options that are offered.