Is there government help to stop foreclosure? In recent months, there has been a lot of controversy about the government's role in helping people who are facing foreclosure. The banks are pushing for better management of funds and increased lending abilities for them. Yet, government help to stop foreclosure is something you have to pursue rather than something that will come to you. If you are a homeowner who is struggling to get caught up on your loan, chances are good that you can use these funding and back up help to accomplish that goal.
HUD And Others
The first place to start when looking for government help to stop foreclosure is with HUD or the United States Department of Housing and Urban Development. HUD does not offer loans. HUD does not tell your lender they have to listen to you. What they do is help provide a better level of communication between you and the lender. They offer education and teach you the rights you have regarding your home and the foreclosure process. Best of all, they often have programs in place to help those struggling to make ends meet to stay in the homes.
If you have an FHA loan, which is a government-backed loan, the FHA department will also work with you to help you find a solution. FHA does not provide loans, but they do back them up with the government's security. They too have a stake in keeping you in the home instead of allowing it to go to foreclosure. Therefore, find out if you have this type of loan and find out what opportunities you may have for the government help to stop foreclosure.
Government help to stop foreclosure may change in the future, too. As new legislation comes out and more people work to fix the foreclosure problems in the United States, you may find that lending options are out there and they may be just what you need to get back on track. Keep on top of the latest happenings in the foreclosure industry. You will see that this is one of the best ways for you to overcome the foreclosures you face.
If you have talked to your lender about your foreclosure, and no help is available, be sure to contact HUD or other government help to stop foreclosure. While the lender is right in that you have failed to make payments on the home as you promised and therefore they have the right to take your home, many government programs can help you to get back on tract and to stay in that home.
When an FHA loan goes into default, the government will foreclose on the property. These properties are then the responsibility of HUD (US Department of Housing and Urban Development). These homes are generally listed on government foreclosure listings. Anyone who is in the market to buy a home can benefit from investigating government foreclosure listings. The government views them as a financial burden and wants to be rid of them. Because they are just trying to recover the loss they have on the foreclosure claim, they will generally let these homes be sold for below market value.
These properties are 1-4 unit residential homes and are available for anyone to purchase. Preference is usually given to owner-buyers, those looking to purchase with the intent of living there. However, investors are also considered and can make a large amount of money for a relatively small investment. Many of the homes that are listed on government foreclosure listings need some TLC and updating. Generally, HUD will purchase a home inspection prior to listing the home. This enables the buyer to see exactly what repairs need to be made before placing a bid to buy. HUD does not make any repairs or pay to correct any damage; the properties are sold As-Is. Anyone that is not afraid of home improvement projects can save a lot of money by buying off the government foreclosure listings.
Since HUD is a federal agency, there are special programs to help communities where these homes on government foreclosure listings are. These programs offer incentives to law enforcement officers, firefighters, teachers and EMTs who buy homes in these communities. This program was designed to promote revitalization in these communities. These incentives amount to a fifty percent discount off the listing price. In return for this significant discount, home buyers agree to live there as their primary residence for 36 months. The hope is to bring revitalization to these communities by getting “good neighbors” to purchase homes.
HUD uses government foreclosure listings web sites to list the homes that are available for sale. These web sites are maintained by management companies that are under contract by HUD. Any real estate agent that is registered with HUD is capable of handling the sale. Another benefit that comes from buying a home that is listed on a government foreclosure listing web site is that HUD agrees to pay the agent’s commission upon completion of the sale, again saving the buyer money.
Purchasing a home using government foreclosure listings is a great money saving technique. If you are willing to be flexible concerning the location and neighborhood where you purchase a home and aren’t afraid to put some TLC into that new home, then purchasing a home from HUD makes sense. If you qualify for the “good neighbor” incentive program, you not only save significantly more money, but you are contributing to the revitalization of neighborhoods across America.
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