Most people when faced with financial crisis want to hide from it and not acknowledge what is happening. There is a great website put out from our government call www.savethedream.ohio.gov. There is help if you have had:
- Loss of employment
- Changes in mortgage payment
- Unpaid bills
- Caring for an elderly parent
- Reduction of income
- Divorce or separation
- Sudden disability or illness
- Other life changing event
There are so many programs out there right now to help you. You don't have to pay someone for this help. If someone tries to get you to pay them they are not working for the government program.
The HARP program is designed to help you if you are underwater and struggling to make payments. You must be up to date with payments for this loan. It is designed to refinance your loan to a lower interest rate. Get into a stable loan product in the case of an adjustable rate and ultimately reduce you payment so you can stay in your home.This loan will not ask to verify income and can finance you if you are underwater.
Sometimes you can't make it work. Your income is just not enough to cover your monthly obligation. You may feel like you can't sell your home because you owe more than the house is worth. That is when you do a short sale. The bank forgives you for the difference in what you owe and what you sold the house for. I'm getting pretty good at this since I'm a Realtor and this is where I can help. every deal is different but most of the time I can get relocation funds for the seller to help them with their move.
Other times a forbearance can help is when you are in a temporary situation like job loss.
If you see that you can't make things work out apply for a forebearance. This is a 6 month to a year program designed to suspend you payments until you get the house sold. The bank may require you to continue to pay your taxes.
A modification is when the bank changes your loan. I haven't seen many good modifications but I hear there is hope in the works. If you are behind say $15,000.00 in your payments what I have seen the banks do is try to attached that on the back side of the loan giving you another 30 years at a rate around 4%. (this changes with the current interest rates). The problem with this is if your are already underwater why would you agree to go deeper in debt.
There are rules regarding which program is available to you based on where your mortgage is purchased. Like Mac and Fannie Mae, or HUD (FHA loan) There are lots of variables.
If you are recovering from foreclosure there are funds available to help you stablize and get back on your feet. Just go to www.savethedreamohio.gov. They even have a fund for your pet!
My advice is not to hide, ask for help and please go to www.savethedream.ohio.gov. If you would like to talk to me further I would be glad to answer any questions. I am not a counselor although sometimes it feels that way. I am an Independent Real Estate Broker. Sandy Maline 440-554-2260