Avoiding Foreclosure ImageFor many, the information required to avoid a foreclosure would mean far less headaches and overall stress for their family.

In order to alleviate situations like this, there are several programs in place to assist with financial difficulties.

When you know what these are, you’ll know which topics to discuss with your bank loan officer.

Once you educate yourself, you’ll find that you learn about other financing options that may fit into your current income level and budget.

H.A.M.P.

One of the first items is known as the Home Affordable Modification Program. You could potentially lower your current mortgage payment between 31 to 40% if you qualify.

This would certainly allow you to stay in your home if you were having minor financial problems. In order to qualify, you would need to have all your financial documents (proof of income, bank statements, etc.) ready for the loan officer to review.

H.A.R.P. (Not the Musical Kind)

This is a unique program that helps homeowners who are current and up-to-date on their mortgage payments.

If your property has decreased in value and made you ineligible for a normal refinance loan, this program may be able to help you instead. Its objective is to provide applicants with a lower rate and more stable type of mortgage than was originally in place.

P.R.A.

Under the Principal Reduction Alternative, homeowners have a chance to work with real estate investors so they can reduce the amount owed on their home.

This is not the same as getting another loan, but rather a method to seek capital outside of your banking institution.

There may also be services like this from other agencies in order to lower the number of foreclosures in the area. You will need to talk with your bank loan officer or a real estate agent to see if they can refer anyone in this arena.

2MP (No, This Isn’t Military Speak)

With this program, you’ll be able to get help on any second mortgage you might have in place. Feeling underwater with one property and not being able to make the payment can cause havoc in other areas of your life. In order to help real estate clients out of this mess, this program helps them apply for a reduction of the principal on their second mortgage.

These tools are in place to help homeowners avoid disaster and foreclosure, if possible.

When a neighborhood had more foreclosures, the overall value of the properties go down. However, by working with these real estate agencies, you may be able to keep your home and the financial stability you are working toward.

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This is filed under Foreclosures.


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