Homeowner Foreclosure Prevention Loans Offer Delinquency Assistance–Are There Options Beyond The Hardest Hit Fund?

Some homeowners may be in a position where foreclosure prevention assistance through loans are available to help those who are delinquent on their mortgage or who may be suffering financial setbacks that could potentially lead to foreclosure. Homeowners may be aware of such programs that are within the Hardest Hit Fund and were part of the Emergency Homeowners’ Loan Program, and there are some states that have similar foreclosure prevention loan programs that may help homeowners avoid falling behind on their mortgage to the point where they face foreclosure, as these loans may not only provide financing for some but could be discharged down the road.

As an example, some states like North Carolina have implemented similar plans as these loan programs but there are also states that have programs similar to the Emergency Homeowners’ Loan Program which may be able to help homeowners address certain mortgage payment issues which have arisen as a result of financial setbacks or factors like unemployment. These states are reported to be Idaho, Connecticut, Delaware, Pennsylvania, and Maryland and are deemed by HUD to be operating programs that are similar to these particular loan initiatives which may help homeowners facing particular hardships on their home loan, but homeowners may have options within a state-specific program as well.

Federal and private modifications may only be able to address a homeowner’s needs up to a certain point as many homeowners need to modify their mortgage to a more affordable payment on a monthly basis, but in cases where factors like unemployment or a drastic reduction in a homeowner’s wages may have taken place modifying a mortgage payment may do little to help homeowners stay afloat. Yet, these loan programs which may differ from one state to another in terms of these state-specific plans could provide beneficial results and, once again, are similar to national programs that are being used in various states to address homeowner needs as well.

Ideally, programs like those specifically from North Carolina or Maryland may either offer a dischargeable loan that will help a homeowner make mortgage payments for a set period of time or they may require homeowners to only meet a small percentage of their mortgage payment, which will be a certain percentage of their monthly income, and this program will help cover the rest. Yet, some plans simply offer financing that a homeowner needs under the confines of a dischargeable loan, so it’s important for homeowners to contact their servicer or state housing agency to see what opportunities may specifically be available.

While some homeowners may have missed the opportunity to apply for programs like the Emergency Homeowners’ Loan initiative, homeowners should remember that there are similar plans in place and alternatives that may help address their specific issue as some homeowners are benefiting from specific unemployment foreclosure prevention plans that may be offered from a state housing agency or federal initiative, but there are also some servicers that may be able to help homeowners directly if their situation is such that the foreclosure prevention plans may be beneficial at the present time.