Hard times can befall us all and nothing is worse than the looming threat of foreclosure on a house that you have worked hard to pay for and call your own. In sports terms, they say the best offense is a good defense and a common phrase often states that an ounce of prevention is worth a pound of cure. Essentially these both mean that the best way to avoid foreclosure on your home is to take the necessary measures before foreclosure begins to loom on the horizon.
There are several reasons why a home may begin to undergo the foreclosure process but by working with lenders, exploring government assistance programs and attempting to stay ahead of the curve, you can avoid foreclosure.
Work with Lenders
Whether you are experiencing a divorce, a job loss or a death in the household, it is always important to work with mortgage lenders and discuss your situation. By letting them know and understand your current position, they will be more likely to work with you on payment period adjustments, missed payments, quick refinancing, etc…
Refinance Immediately
The instance you feel you may be in trouble with your home, speak with your lender about the option of refinancing. It is easier to refinance with one delinquent payment or before a payment is late than to attempt a refinance with 60 days or more of missed payments. There are also several government programs to help the refinance process to help homeowners avoid foreclosure.
Government Programs
The Obama administration has implemented several government programs to help homeowners remain in their homes and stimulate the economy. Each of these government programs work with the homeowners to meet their needs, and they help make home owning affordable. Some of these programs include the Making Home Affordable (MHA) Program, the Principal Reduction Alternative and the Home Affordable Unemployment Program (UP). There are other government programs that have been around before the Obama administration that offer quick, streamlined refinance opportunities.
The FHA (Federal Housing Administration) and The VA (Veterans Affairs)
Two government programs that help homeowners undergo speedy refinances are the FHA and the VA. FHA homes can explore a few refinancing options, each to lower and lock in interest rates as well as gain lower, more affordable monthly payments. This can be an excellent way to avoid foreclosure on a home and improve monthly housing financing. The VA also works in a similar way for homeowners who may be veterans of the United States military.
Luckily, both of the programs do not require a home be originally purchased through these programs to take advantage of their benefits. For conventionally purchased homes, a refinance with a program like the FHA can help avoid foreclosure.
Helping You Avoid Foreclosure Before it Starts
An ounce of prevention is worth a pound of cure and we can help you avoid foreclosure on your home. Just contact our expert loan officers to discuss your home refinancing options.