One of the major concerns when in the process of buying a home is the potential of going into foreclosure. Foreclosure is that legal predicament in which a home owner, who is making payments, defaults on their loan and the financial institution takes back the home that rightfully belongs to them by virtue of the loaned money.
Therefore, if an individual is in financial difficulty and unable to meet their financial responsibilities, it is important to know what options are available to the individual. Specifically, it is important to know what private foreclosure help is and what is federal foreclosure help.
What Is Private Foreclosure Help?
If an individual is having trouble making their mortgage payments, it is important to know that there are resources available to the individual to help them through this predicament. One of those entities can be a private foreclosure service.
Often these private foreclosure services are operated by a not-for-profit agency and therefore will provide their service at no cost or charge a fee on a sliding scale. The sliding scale fee is based on how much the individual earns and the fee is assessed accordingly.
Often a private foreclosure helping agency will assess the individual’s situation and offer significant advice as to how the individual may be able to work through their situation. Some of those practical suggestions could include the use of any investments that the individual may have and hasn’t thought about tapping into those funds. Often, an IRA or other tax shelter investments can be tapped into if the owner is experiencing a financial hardship.
Another option that a private foreclosure group may offer to the individual or family is to help them renegotiate the home loan. Often, financial institutions will work with the individual who is experiencing a difficult time in meeting their mortgage payment. This not only benefits the homeowner as it allows them to stay in their home and continue to make lesser payments, but keeps the home from being repossessed by the financial institution. This is important for the financial institution as it does require the lender to carry a bad asset on their books.
What Is Federal Foreclosure Help?
Another option for an individual or family who is having trouble meeting their mortgage is to obtain federal foreclosure help. Specifically, federal foreclosure help puts the resources of the federal government at the disposal of the individual homeowner.
Specifically, with federal foreclosure help, mortgage companies such as Fannie Mae or Freddie Mac, are contacted on behalf of the homeowner towards renegotiating the mortgage. In addition, through federal foreclosure help, there may be money available to help the struggle mortgage owner with mortgage payments over a set period of time.
One specific federal foreclosure helping agency is the U.S. Department of Housing and Urban Development or HUD. This particular agency utilizes qualified, trained and professional housing counselors to help the struggling home owner to know what options are available and to know what rights they have under federal law. Often HUD foreclosure help is provided at no cost or can be provided at a nominal fee. In addition, HUD foreclosure help can be obtained either through the Internet or by dialing one 800 numbers.