(NAPSI)-There’s hopeful news for homeowners who fear they may be facing foreclosure on their home.
That’s because there are practical steps they can take – such as a new refinancing program from the federal government – to resolve the problem before it gets to the point where the lender takes over their home for nonpayment.
Remember, lenders do not want your house. That’s one reason there are options available to help borrowers through difficult financial times.
Here are some tips from the experts at the Federal Reserve Board:
• Don’t ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house. If you are unable to make your mortgage payment, contact your lender as soon as you realize that you have a problem.
• Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include an important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.
• You can contact a HUD-approved housing counselor in your area. The U.S. Department of Housing and Urban Development (HUD) can connect you with free or very low-cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and help you in negotiations with your lender if you need this assistance.
One option may be to participate in a new program, created by Congress, that is intended to help borrowers at risk of default and foreclosure to refinance into more affordable loans. It’s called HOPE for Homeowners, or H4H.
If you are having trouble making your mortgage payments, this program may allow you to refinance your loan into a new 30-year fixed-rate loan with lower payments. All HOPE for Homeowners loans are 30-year fixed-rate mortgages insured by the Federal Housing Administration (FHA).
The program began on October 1, 2008 and will end on September 30, 2011.
To learn more, call 800.569.4287 or TTY 800.877.8339, or visit the website at hud.gov/hopeforhomeowners/index.cfm.
If you are unable to make your mortgage payment, contact your lender as soon as you realize that you have a problem!