If you fall behind on an FHA loan, there are some great tips in this vignette, like:
- Call or write to your lender as soon as possible.
- Clearly explain the situation and be prepared to provide financial information.
- If you fall behind on an FHA loan – Keep living in your home to qualify for assistance.
- Contact a HUD-approved housing counseling agency and cooperate with the counselor/lender trying to help you.
HUD has a number of special loss mitigation programs available to help you:
- Special Forbearance – your lender will arrange for a revised repayment plan which may include temporary reduction or suspension of payments; you can qualify by having an Involuntary reduction in your Income or Increase In living expenses.
- Mortgage Modification – allows you to refinance debt and/or extends the term of the your mortgage loan which may reduce your monthly payments; you can qualify if you have recovered from financial problems, but your net income Is less than before the problem.
- Partial Claim – your lender maybe able to help you obtain an interest-free loan from HUD to bring your mortgage current.
- Preforeclosure Sale – allows you to sell your property and pay off your mortgage loan to avoid foreclosure.
- Deed-In-Lieu Of Foreclosure – lets you voluntarily “give back” your property to the lender it won’t save your house but will help you avoid the costs, time, and effort of the foreclosure process.
If, after you fall behind on an FHA loan, you are having difficulty with an-uncooperative lender or feel your loan servicer is not providing you with the most effective loss mitigation options, contact the FHA Loss Mitigation Center for additional help.
What Should I Do If I Can’t Make A Payment Or Fall Behind On An FHA Loan? is a post from Life and Real Estate in Campbell CA, which is not to be copied on other sites.