Help for homeowners facing foreclosure

By: Dennis Norman

Today many people that never thought they would find themselves in this plight are now facing the potential of losing their homes to foreclosure. Aggressive lenders, creative loans and a super charged real estate market for about 5 years until sometime in 2006 all helped put many people in a difficult position with regard to their home mortgage.

The credit crunch and the meltdown of the mortgage industry that happened this year just added fuel to the fire and, oh yeah, dropping real estate values was the cherry on top.

Additionally even for those that are fortunate enough to have equity in their homes and normal mortgages the rising unemployment rate has resulted in over 1 million people becoming unemployed this year alone forcing many of them to face the risk of losing their homes as well. In fact the October 2008 report from the Department of Labor states that “employment has fallen by 1.2 million in the first 10 months of 2008; over half of the decrease has occurred in the past 3 months”.

So what do you do if you are facing or are afraid you may soon be facing the possibility of foreclosure on your home? To start with, face it head on and as soon as possible. Time is not on your side so don’t waste it….also don’t hurt your chances of working through this problem by allowing your pride or ego to prevent you from admitting you have a problem and seeking help. You are not alone in this situation, and while I am not a “misery loves company” type of person, I can tell you that there are plenty of people from all walks of life and even the affluent facing the same problems you are. There is help available to you though. If you have not done so already you need to call your lender , explain your situation to them and see if they are willing to restructure your loan or work with you to help you get back on track. With a record number of foreclosures lenders are very motivated to work with you provided you can show that your setback is temporary or that you have some way to get back on track. Obviously if you cannot lay out a plan to the lender showing them how you will eventually get caught up or be able to afford even a reduced payment amount then the lender will not be able to help you.

Avoiding Foreclosure:

• HUD Approved Housing Counseling Agencies
• HUD’s Guide to How to avoid foreclosure
• Neighborworks America – Counseling and Help
• Neighborworks America Local Organization Locator
• State & Local Resources for avoiding foreclosure
• Hope Now
• Servicemembers Civil Relief Act Info
• Watch out for foreclosure SCAMS
• More on Foreclosure Rescue Scams

Refinancing Alternatives and Information

• FHA Secure Program
• HOPE for Homeowners Program (Brand new FHA Program..Started October 1, 2008)
• HOPE for Homeowners Fact Sheet
• HOPE for Homeowners FAQ’s
• Who to Contact When a Lender won’t work with you

Foreclosure Laws and Other Miscellaneous Information

• Foreclosure Laws By State
• Approved Credit Counseling Agencies
• IRS Info on Foreclosure Tax Relief

Related Posts

1. New alternative for some homeowners facing foreclosure; Deed for Lease
2. Tips for what to do if you are facing foreclosure on your home
3. Help for homeowners facing foreclosure or are underwater
4. Tips from the Federal Reserve for avoiding foreclosure scams
5. Help for unemployed homeowners facing foreclosure