What Is a HUD Assignment?

The HUD Assignment Program is a popular program to which homeowners having difficulty paying back their loans are assigned. Homeowners having mortgage repayment difficulties can apply to HUD to receive assistance repaying their mortgages. This will lessen the debt imbalances of homeowners, making it easier to recover before foreclosure occurs.

Mortgage lenders contact HUD to assign bad mortgagors to them, instead of having to foreclose on the property themselves. HUD then pays off the remaining mortgage debts to the mortgage lender, and the troubled homeowner and HUD work out a debt restructuring program to help cure their default.

The program is popular because it has proven to save mortgagors from losing their homes, and a high percentage rate of homeowners who participate in this program have repaid their loans in full. This includes payment of service charges and arrears, despite previous difficulties in repaying their mortgages. Some statistics show that it can take between 1 and 3 years to assist a homeowner to completely reorganize his or her finances.

If you are close to defaulting on your mortgage, consider getting in touch with your lender to ask them to assign you to the HUD program if you have not already been. It could save you from losing your home completely.