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HomeNewsThe Federal Government's Steps to Help Homeowners Avoid Foreclosure

The Federal Government’s Steps to Help Homeowners Avoid Foreclosure

The U.S. Government announced several programs over the last few years to help homeowners in need of assistance to avoid foreclosure. These programs strive to help responsible homeowners who are simply having difficulty paying their mortgage.

Every day thousands of people like you have trouble making the next mortgage  payment. Though things may seem hopeless, help is available. However, you need to take the first step! If you ignore the problem you may lose your home to foreclosure, possibly affecting your ability to qualify for credit or to rent another  home.

Available programs include:

Using funds already authorized in the Housing and Economic Recovery Act of 2008, the Treasury is increasing its funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability.

If you have questions about these programs, including eligibility requirements, you may contact:

  • HOPE NOW Alliance at 1.888.995.HOPE (1.888.995.4673) or (TTY) 1.877.304.9709
  • FIND EHLP 1.855.FIND.EHLP (1.855.346.3345)
  • Fannie Mae at 1.800.7FANNIE (1.800.732.6643)
  • Freddie Mac at 1.800.FREDDIE (1.800.373.3343)
  • You may also contact your mortgage servicer or lender (the organization to whom you make your monthly mortgage payments)

Finally, for more information on how to file a complaint against the mortgage company or lender you have been working with, you may contact the HOPE NOW Alliance, the Federal Trade Commission (FTC), or, if bankruptcy is involved, your local office of the U.S. Trustee Program. You may also wish to contact your state or local bar association. They may be able to help you find affordable legal help.

Beware of foreclosure prevention scams

Beware of foreclosure prevention scams! You may be approached by organizations with official sounding names offering a quick fix to your mortgage problems. They often charge hefty fees or require that you “temporarily” sign over your deed to them. Remember — solutions that sound too good to be true usually are.

These precautions will help you avoid being taken by a scam artist:

  1. Never sign any papers you don’t fully understand.
  2. Check with a lawyer, your lender or trusted advisor, or a HUD-approved housing counselor before entering into any deal involving a loan assumption, contract of sale or a transfer of the deed to your home.
  3. If you can’t afford your current mortgage, don’t be talked into refinancing into a new loan with a higher payment.

To find a HUD counselor in your area call: 1-800-569-4287 or TDD 1-800-877-8339.

What is the FHA?

The Federal Housing Administration (FHA) is part of the U. S. Department of Housing and Urban Development (HUD) and makes homeownership available to
individuals and families that need  a little extra assistance, by providing mortgage insurance on loans made by FHA-approved lenders throughout the United States
and its territories. FHA borrowers are often first time homebuyers, moderate income families or folks who can’t afford a large down payment.
To learn more about FHA’s programs, please visit: www.hud.gov/fha or contact
the FHA Resource Center: 1-800-CALL-FHA (1-800-225-5342)

Additional Resources

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