Foreclosure Help from HUD for Residential Properties

The U.S. Department of Housing and Urban Development  (HUD) website is an excellent resource to find foreclosure help with HUD properties. HUD foreclosure help is available to all distressed homeowners by contacting a certified HUD housing counselor. There is no cost to the consumer for these services. You can find a list of HUD housing advisors in your area on the HUD website listed above.   There are also other non-profit organizations and privately owned companies that can advise consumers on foreclosure options as well. The private companies do charge a fee for their services.

Current and New HUD Foreclosure Help Programs

The Obama Administration’s Making Home Affordable Modification and Making Home Affordable Refinance Programs are available to distressed homeowners. There are some eligibility requirements that homeowners must meet in order to qualify for assistance. The programs are available for primary residences and owner-occupied properties with 2-4 units.

The Treasury Department recently announced new guidelines on the Home Affordable Modification Program (HAMP) and the Home Affordable Alternatives Program (HAFA), which is part of HAMP. Loan servicers are offered incentives to participate in these programs which take effect April 10, 2010. They are also encouraged to participate earlier if they choose. The participation is voluntary. Buyers are also offered an incentive to participate in the HAFA program if they complete a short sale purchase transaction. 

HAMP offers eligible borrowers a uniform loan modification process to provide them with an affordable monthly payment on their first lien mortgage. For borrowers that do not qualify, the HAFA program offers eligible them an alternative option of selling their home as a short sale or signing a deed in lieu of foreclosure and returning their home to their lender. The addition of the HAFA program should help streamline the short sale approval process which has been taking as long as six months to one year to get lender approval.

Be aware of Foreclosure and Loan Modification Scams. Find out tips and more information to be prepared in staying away from fraud.

Alternative to HUD Help: Foreclosure Defense Attorney

The HUD is a good place to start investigating alternatives to foreclosure. However, it is recommended that you seek the help of a foreclosure defense attorney regarding legal issues pertaining to foreclosures and the implications of alternative foreclosure programs.   

A foreclosure defense attorney is the only person who can legally defend you in a foreclosure action. Also, your foreclosure defense attorney can do a forensic loan audit of your current mortgage to make sure your lender did not violate any truth and lending laws or commit any predatory loan practices against you. If the attorney discovers that your lender did any of these things, he or she can use that as a bargaining chip in negotiating with your lender to save your home from foreclosure. Lenders face penalties and fines for violating these laws so they would rather find a solution that works for both parties.

A foreclosure defense attorney is an expert in foreclosure laws and helping homeowners save their homes. The attorney can legally represent you with all negotiations between you and your lender.