Upcoming Foreclosures

When can I apply for the government foreclosure bailout program?

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.
2. You should call your servicer to see if you qualify for any type of assistance as most investors are offering modifications and other workouts for customers in your situation. When you call be prepared with your income and general expense information. They will run you through their system to see if you're a good candidate for a workout. Keep in mind when you call that if you're completely upside down in your DTI's that you're likely to not qualify for anything. You can review your expenses/income before you call and get a good idea of what is going to happen. If you're $500 upside down but are making a monthly car payment of $400, you might want to sell the car. You're also going to need a contribution amount available when you call (if you're breaking even or in a small surplus situation) - 30% of the delinquent amount is a decent figure - but most servicers will work with less (again, if you are breaking even or have a small surplus in income). If you've already modified your loan once in the last 12 months - you will not qualify for anything except a repayment plan (in a surplus sitaution). The first place to start - your servicer. Have your information available and make sure you have a contribution amount that you'll be able to come up with if you do get approved for a workout. If you tell them you have a $5000 contribution - make sure you have a $5000 contribution or the workout will be declined. Good Luck