How Can I Get Help With Foreclosure?

Making Home Affordable

The federal Making Home Affordable program is available to homeowners seeking ways to reduce monthly mortgage payments. Homeowners facing foreclosure may qualify for a loan modification through Making Home Affordable. Loan modification is the permanent restructuring of your mortgage loan. Modification options often include adding the amount of your past-due balance to your principal, or extending the life of your loan. When you are approved for a loan modification, you must undergo a trial period before the changes to your loan become permanent. The purpose of the trial period is to ensure you can afford your monthly mortgage payments.

Finding the best mortgage assistance program for your circumstances isn't always easy. Qualification rules vary among programs. It is wise to consult with a HUD-certified foreclosure counselor before making a final decision regarding mortgage assistance. A foreclosure counselor can provide an unbiased perspective on your options, including financial assistance through local agencies. For example, the United Way of Metro Atlanta offered a foreclosure-assistance program in 2010 that provided $3,000 in aid to homeowners with delinquent mortgage loans.

The Neighborhood Assistance Corporation of America offers a range of foreclosure prevention options. Before negotiating with your lender, an NACA counselor reviews your financial circumstances to determine how much you can afford to repay on your mortgage loan each month. NACA is a great option if you prefer not to negotiate with your lender directly. NACA counselors understand your state's mortgage laws and can ensure you receive the maximum modification benefits available from your lender. You must have a source of income to qualify for any NACA mortgage-assistance program.

Mortgage-assistance programs are as diverse as the homeowners who pursue them. When applying for mortgage assistance it is essential to begin your proposal with a hardship letter to your lender. If you are working with NACA, a counselor will help you prepare your letter. Unemployed applicants may be eligible for assistance through the Making Home Affordable Unemployment Assistance program. The program offers a special type of forbearance to homeowners who are unemployed. However, you must qualify for unemployment benefits to receive assistance through Making Home Affordable. Forbearance helps by temporarily suspending or reducing your monthly mortgage payments.