Upcoming Foreclosures

When can I apply to get help from the government foreclosure bailout?

And is it too late if the foreclosure has started?

Public Comments

1. The government's foreclosure bailout program, unveiled on Wednesday, February 18th, started on March Fourth. It's up to the homeowner to contact their lender. Lenders have now started taking applications for loan modifications. If the foreclosure process has begun, you might consider a cash-for-keys program. Details are here: http://how2avoidforeclosure.blogspot.com
2. Its not too late. Call your lender now, the bank you send your payments too, and they will transfer you to the right department. usually the loan modification dept and tell them your situation. The bailout plan helps both those that are ok with their payments and those that are almost in foreclosure. So it doesnt hurt to try. I have and have submitted my paperwork, and I havent missed a payment.
3. The first thing to find out is whether or not your loan is a Fannie or Freddie loan. Those two investors are the ones that the Obama plan is slated for. You can find out who your investor is by calling your loan servicer or going to www.hud.gov. If your loan is backed by Fannie or Freddie you should call your servicer to apply for assistance. You'll need to provide them with your income and expenses, your hardship, and if your loan is delinquent be sure you can advise them what (if any) contribution dollar amount you'll be able to provide. Here's a great place to look to see what the specifics are: http://www.hud.gov/recovery/ If you're loan isn't backed by Fannie or Freddie than you won't qualify for the programs being placed out there by Obama today, however, you should still call your servicer to ask if there is anything out there for your investor backed loan (FHA has Modifications and Partial Claims, GNMA has Modifications, there is other new programs out there as well). You won't know unless you take the first step. Something else you need to know before you call asking for a loan modification on your current loan is what exactly is your DTI? When you apply for assistance if you make enough or more than enough money to support your monthly mortgage payments - you will not get a modification. You can afford your payments - these programs are for people who cannot afford their payment. If you're looking to change the terms just because you would prefer a lower interest rate and you don't want to pay closing costs, you're not going to get far asking for a loan mod. You'll need to apply for a new loan through your bank or a bank or your choosing. Example: If you make $5K per month, your payments are $1200 and your other expenses total $1000 - your total monthly expenses are $2200. You are not going to qualify for a loan mod because you make to much. But if your total expenses are $2200 and your monthly income is $2500 than it's likely you'll be able to get approved for a workout. If you have a deficit that is too great, you'll end up being declined. It's a fine line (sometimes) in this new world we live in. Good Luck