State and local government programs that provide mortgage assistance and stop foreclosures.
Many states and local governments have created assistance programs to help their residents with paying and/or refinancing mortgages in an effort to reduce and stop foreclosures. The type of help provided will vary by state, however it will usually include access to new mortgage loans, help with refinancing an existing mortgage, free counseling, grants, mediation, and other forms of free financial aid.
Some states have also put into place programs to postpone or slowdown the foreclosure process, or foreclosure moratoriums. Homeowners will usually have other resources available to them, depending on where they live. Select your state below to see what mortgage and foreclosure assistance programs they offer.
Financial assistance and advice from states
States also have emergency financial aid programs for paying numerous other housing expenses, including electric bills, storage costs, relocations, and property taxes to name but a few. Many of these programs are offered in partnership with non-profits, such as a community action agency. Find additional assistance programs, including those focused on foreclosure prevention, offered by your state throughout this site. There can also be local charities or non-profits that use government grants to provide homeowners assistance with their mortgage payments. Find more details on state government financial assistance.
When reviewing the programs available in your state, homeowners need to inquire into loan modifications. Many state and federal government programs exist that can modify an existing home loan. You will often be working with a counselor or mediator throughout the process. The professional can be an effective tool in negotiating the best favorable terms. With a mortgage modification, it is possible that a homeowner can receive:
- a lower interest rate
- some or all late fees and charges may be waived or reduced
- your interest rate may be changed from an adjustable rate loan to a fixed rate
- the months or years the homeowner has to repay the loan may be be lengthened
- total loan principal may be reduced.
- your second mortgage or equity loan could be waived.
Many other resources are offered too. More details by state are below. the fact is each and every government wants to create a strong housing market in their municipality. So they will help homeowners that are struggling to pay their mortgage.
Government Programs for Mortgage Help and Foreclosure Prevention
There are other state mortgage assistance programs that are run in partnership with the federal government or HUD. Many states are also receiving federal government funds as part of the Hardest Hit Fund program. This resource is focused on homeowners who have lost their jobs and/or have had a significant reduction in income. It can provide a grant to pay a portion of a mortgage, counseling, and other support services.
In addition to these state government mortgage assistance programs, most states also have non-profit law firms that can provide free foreclosure counseling and help. Attorneys are paid for using government grants. Click here to find a free law firm in your state.
The firms receive funding from the federal government Legal Services Corporation as well as other state and government grants. Lawyers and legal professionals will work directly with the homeowner and their lender to explore various foreclosure prevention programs. This can range from mortgage assistance programs, state government mandated mediation services and other options that can help them save their home.