Trying To Avoid Foreclosure Check Your Local Housing Authority?

Answer 1

Housing foreclosures have become a serious problem across the United States. According to foreclosure-information provider RealtyTrac.com, foreclosure activity in the United States rose 4 percent in August. That comes out to one foreclosure filing for every 381 U.S. housing units. Those homeowners who are struggling with their own mortgage payments do have at least one source to turn to for help: their local housing authority.

States across the country feature local housing authorities that provide financial assistance and counseling to homeowners who are in danger of losing their homes because they are falling behind in their mortgage payments.

These local housing authoirities usually offer what are known as foreclosure prevention programs. These programs come in many different forms:Some authorities work with struggling homeowners on budgeting and changing negative spending habits. Others work with both homeowners and their mortgage lenders to craft compromise agreements that result in lower monthly mortgage payments.

Other housing authorities hold regular foreclosure-prevention workshops. Lenders, government agencies and credit counselors talk at these events, and provide their advice on how homeowners can best avoid foreclosure or take steps to prevent it once lenders initiate foreclosure proceedings.

Finally, many local housing authorities provide their own financial aid programs designed to help homeowners make hteir monthy payments and retain their homes.

The federal government's Home Affordable Modification Program provides an additional level of support to struggling homeowners. This program, launched in 2009, provides financial incentives to mortgage lenders and banks that modify the mortgage loans of struggling homeowners so that these homeowners have lower payments each month. The program's goal is to reduce the soaring number of foreclosures across the nation.

Applying for a loan modification through this program can be a daunting task to many homeowners. That's why they shoud check with their local housing authority. Many will help guide homeowners through the Home Affordable Modification Program process.

All of these foreclosure-prevention prorgrams offered by housing authorities are important. Housing foreclosures help no one. They obviously devastate families that lose their homes. But foreclosures also drag down housing values in neighborhoods. It's hard for homeowners to sell their homes for $250,000 when foreclosures in the same neighborhood are selling for $200,000.

Consumers facing a foreclosure should contact their local housing authority. They might find that their authority has the resources to help prevent them from losing their homes.