Monday, August 17, 2009

Facing Foreclosure?

There are millions of Americans currently struggling to keep their homes. Companies are down sizing and the cost of goods is rising causing many families to find it harder to pay their monthly mortgage payment Know that you are not alone in this struggle and that there are steps that you can take to save your home from foreclosure.

The first thing to do when you can't pay your mortgage is contact your lender as soon as you have a problem. Many people try to avoid the lender, this is a mistake considering the fact that your lender may have ways to help you in your situation.

This should be your first step when you miss a mortgage payment. Keeping the lines of communication open between you and your lender is important and could benefit you if programs become available. If you do not contact your lender than your lender will make every effort to contact you either by phone or by mail. Don't ignore mail from your lender and if they call explain your situation. If your lender doesn't hear from you, they will have to start legal action leading to foreclosure.

Try to make your mortgage payment. If you cannot make a payment contact your lender and find out what possibilities are available to help you catch up.

Some possibilities are:
1. Reinstatement: Your lender is always willing to discuss accepting the total amount owed in a lump sum by a specific date. Forbearance may accompany this option.
2. Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time. The money might come from a hiring bonus , investments , insurance settlement, or tax refund.
3. Repayment plan: You may be able to get an agreement to resume making your regular monthly payments, plus a portion of the past due payments each month until you are caught up.

If you feel that you cannot pay your mortgage payments maybe because of an Adjustable Rate Mortgage (ARM) or a recent job loss ask your lender for information on a loan modification. There are many government programs available right now to help distressed homeowners keep their homes. Ask your lender if you qualify for any of these programs.

If you feel that your lender is not helping you or if they say there are no programs available to you DON'T GIVE UP! I have included links in the resource section below that will direct you in finding the help you need to save your home.

Remember that you must attempt to pay a mortgage payment while your are searching for help. Paying a payment will bide you more time as you search.

Protecting America's Homeowners
Hope For Homeowners
Hope Now
Steps to Stop foreclosure

Organizations that help those in need

Wish Upon a Hero is a one of a kind service designed to connect those in need with people that can truly change their lives.Wish Upon A Hero is completely free to its users, allowing everyone who registers the opportunity to cast up to three wishes at a time. Because Wish Upon A Hero is designed to help everyone, wishes can be big or small, elaborate or simple, based on financial need or just asking for a simple favor.

Whether you need help with past due utility bills, housing or emergency resources there may be a hero out there that is able to help. Visit Wish Upon a Hero

Modest needs is an award-winning public charity with a simple but critical mission: we work to stop the cycle of poverty BEFORE it starts for the low-income workers empowering compassionate members of the general public to safely and securely help hard-working, low-income households to afford the kinds of short-term emergency expenses that we've all encountered before: the unexpected car repair, the unanticipated visit to the doctor, or the unusually large heating bill, for example. Visit Modest Needs

You can also try calling your local churches for help with food, help with utility bills and more. They have money set aside to help people with needs.

Find the help that you need when you need it!

Assistance with food: The first step is to contact your local Social Services office and apply for food stamps (monthly food coupons) and Tanf (Temporary Assistance for Needy Families.).
Social Services

Assistance with rent: You can apply for rental assistance through section 8. Ask your Social service worker for the phone number to the Section 8 housing authority in your area. Visit the Section 8 Voucher Program.

Assistance with heating bills: You can apply for the Low Income Home Energy Assistance Program (LIHEAP) for help with your heating bills. You can apply for this program through your Social Service office or contact you heating supplier for the phone number to the Energy assistance program in your area. Visit The Home Energy Assistence Program

Assistance with food and nutrition (WIC): The Special Supplemental Nutrition Program for Women, Infants, and Children - better known as the WIC Program - serves to safeguard the health of low-income women, infants, & children up to age 5 who are at nutritional risk by providing nutritious foods to supplement diets, healthy eating tips , and referrals to health care. Visit The WIC Program

These programs have been put in place to provide assistance to families that are in need. Whether you are a single parent, lost a job or simply need help contact you local Social Service office and inquire about these programs. Visit The Energy Assistance Program

**These programs also supply employment resources and job training programs free of charge.