November 25, 2010
In tough economic times, many home owners struggle to keep up with their mortgage payments. The first time an FHA borrower misses a mortgage payment, the collection agencies won’t come knocking on the door, but that first missed payment is a slippery slope that leads toward FHA mortgage default and eventually foreclosure. There are many programs designed to help keep a buyer in their home, but those who act quickly may not even need the most recent Obama mortgage program or government home loan bailout plan.
The FHA advises borrowers to get in touch with a HUD-approved counseling agency the moment it’s clear the borrower will have trouble making the next mortgage payment on time. FHA loan counseling is available at 1-800-569-4287 or TDD: 1-800-483-2209.
There are a number of programs that can help including revised payment plans called Special Forbearance. The Special Forbearance program can temporarily reduce or even suspend mortgage payments. This program is especially for those who have had an “Involuntary reduction in your Income or Increase In living expenses.”
Another FHA program is Mortgage Modification, which can extend the term of the your FHA home loan to reduce the amount of your monthly payments. Borrowers are eligible for this program if they are recovering from financial problems but have less net income than they did before the debt crisis.
Yet another option is called the Partial Claim, where the lender helps the FHA mortgage holder to get an interest-free loan from the Department of Housing and Urban Development to bring your overdue or delinquent payments back to current status.
In all of these cases, one of the most important pieces of advice from the FHA is to keep living in the home. Do not walk away from the mortgage and the property, or you may not be eligible for any help at all to prevent foreclosure. The earlier you seek help, the easier it will be for the lender and the FHA to provide assistance where needed.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
Browse by Date: