Foreclosure Help

Overwhelmed homeowners can benefit from government programs that provide free information, counselling, and mediation. Obtaining knowledge on how to prevent foreclosures is a crucial first step. Frequently asked questions, information about foreclosure alternatives available to you, and guides on avoiding fraud are all standard features of government programs. Free housing counselling is available through government programs to assist you in communicating with your lender and determining which solutions are best for you based on your unique circumstances. Some state courts also provide mediation services to assist homeowners in staying in their houses or negotiating a fair leave.

Foreclosure Resources from the Federal Government
The federal, state and local governments all have foreclosure aid programs. The United States Department of Housing and Urban Development (HUD) provides free foreclosure prevention counselling at the federal level. You can search for HUD-approved housing counselling agencies in your area by the state on the HUD website.

Furthermore, the Making Home Affordable (MHA) program is a component of President Obama’s comprehensive Homeowner Housing Affordability and Stability Plan, which was implemented in the aftermath of the subprime mortgage crisis. The MHA is a comprehensive plan to assist homeowners in avoiding foreclosure. While some of the MHA’s federal programs expired at the end of 2016, a HUD-approved counsellor can explain which federal programs are still available and may be of assistance to you.

State and local governments can assist with foreclosures.
Various state and municipal government initiatives are also available to assist homeowners in avoiding foreclosure. The following are some examples of these programs:

• The state offers free foreclosure counselling, aid, and mediation for Washington citizens.
• For homeowners struggling to make mortgage payments due to temporary financial hardship, North Carolina has a Foreclosure Prevention Fund. The Fund also assists veterans who transition from military to civilian life.
• For homeowners facing foreclosure or who are currently in foreclosure, New York State established a Foreclosure Relief Unit. In New York, there is even a Mobile Command Center that visits communities that have been disproportionately affected by foreclosure.
• California homeowners in financial distress can take advantage of free help programs offered by the California Housing Finance Agency.
• In Cook County, Illinois, the Superior Court runs a Mortgage Foreclosure Mediation Program that provides essential services to homeowners facing foreclosure.

California’s Mortgage Relief Program will be the nation’s largest.
Hundreds of thousands of homeowners will benefit from a $1 billion fund to help them save their houses.

Governor Gavin Newsom announced today that the US Department of Treasury had approved California’s plan to provide $1 billion in mortgage relief grants to tens of thousands of homeowners. It is for those who have fallen behind on housing payments or reverse mortgage arrearages due to the COVID-19 pandemic, clearing the way for a full program launch in the coming weeks. The California Mortgage Relief Program, under Governor Newsom’s plan, will assist an estimated 20,000 to 40,000 struggling homeowners, with funding set aside for those in socially underprivileged communities who have been impacted hardest by the pandemic.

“We are dedicated to assisting those who have been impacted the most by the pandemic, including homeowners who have fallen behind on their mortgage payments,” Governor Newsom said. “No one should have to live in fear of losing their house, so we’re stepping in to help struggling homeowners acquire the tools they need to make up for missed mortgage payments.” Renters and landlords have already benefited from our Housing is Key program, which has provided them with the support and resources they require to stay afloat. We’re now extending that aid to homeowners through our California Mortgage Relief Program.”

Past due housing payments will be reimbursed in full – up to a maximum of $80,000 per household – through a direct payment to qualified homeowners’ mortgage servicers under the mortgage relief program. The financial assistance is given as a one-time gift that eligible homeowners will not have to repay, allowing them to catch up and start over. The program’s funding comes from the Homeowner Assistance Fund established by President Biden’s American Rescue Plan Act.

“Many Californians have lost their jobs or had their wages slashed as a result of the pandemic, leaving many wondering how they will be able to keep up with their housing payments,” said Lourdes M. Castro Ramrez, Secretary of the Business, Consumer Services, and Housing Agency. “This initiative will assist families in keeping their homes and providing the stability they require to recover from the pandemic’s financial, physical, and emotional toll.”

“Homeowners whose mortgage payments were paused during the pandemic are now facing the end of those forbearance periods,” said Tiena Johnson Hall, Executive Director of the California Housing Finance Agency. “The California Mortgage Relief Program will alleviate some of that anxiety and give eligible homeowners a chance to catch up on those housing payments and regain that sense of security.”

Californians who own a single-family home, condo, or prefabricated home (permanently fastened) who experienced a pandemic-related financial hardship after January 21, 2020, are at or below 100 per cent of their county’s Area Median Income may be eligible.

In the coming weeks, the California Mortgage Relief Program will begin accepting applications via an online gateway at CaMortgageRelief.org. Before launching the application portal, interested applicants can visit the website to check the program and eligibility details.

Purchasing a home is a significant achievement that comes with substantial responsibilities. Unexpected financial difficulties might result in missing mortgage payments and a great deal of anxiety. Dread and uncertainty may drive you to overlook the problem, but you risk losing your home if you do so. The good news is that there are several free government programs available to assist you in avoiding foreclosure. If you’re facing foreclosure and don’t know where to turn for aid, keep reading to find out about government programs that might be able to assist you.

Consult a Foreclosure Lawyer
To avoid foreclosure, time is the key, and quick action is required. Some people find dealing with a foreclosure so intimidating that they don’t know where to begin. As a result, speaking with an experienced attorney who can assist you streamline the procedure is usually a good option. Contact a local foreclosure attorney to learn more about government programs and alternative foreclosure solutions.