|
What happens if I have problems making my mortgage payment?
If your problem is with making payments for all the other bills, you may want to consider a debt consolidation loan that will pay off your bills. The monthly payment for this type of loan may be less than the total amount of payments you made for all the high interest charge accounts.
If financial trouble hits and you know you will have problems paying your mortgage, contact your lender. Honest lenders do not want to put a home in foreclosure, especially in this economy where the home will probably sit vacant for a considerable amount of time. Your lender's willingness to help out will depend on your past payment history.
Are there any organizations that can help a person who got stuck with a subprime loan and will probably end up in foreclosure?
Yes there are, and every day more people are stepping up to provide assistance.Your state and your city may already have a financial assistance program in place. The City of Chicago recently announced that it was going to provide some assistance to those in Chicago who have become victims of the subprime or predatory lending scams. Contact your state and city information centers.
Major mortgage lenders are also introducing programs that will assist those with subprime loans. These programs are designed to financially enable homeowners so they can qualify for a standard mortgage. Some of the programs offer advice, while others provide funding. These are not no-name rescue loans, but qualified mortgages offered by major financial institutions. Your lender - the one that originally wrote the subprime loan - may offer this type of program.
The goal is to eliminate all subprime loans from the lender's portfolio and take away the black eye that the lending industry got by offering the subprime loans in the first place. There are also other organizations that can offer help. HUD, FHA, Freddie Mac, and Fannie Mae all have programs for those that may lose their home. The Neighborhood Assistance Corporation of America has a program called Home Save that may help a person refinance his or her subprime or predatory loan.
Local legal assistance groups may also be able to help someone who is about to lose his or her home in foreclosure. It would be impossible to list all the assistance organizations here and by the time you read the list there would be more organizations to add. Be wary of organizations that contact you without you first calling them. Find out about the organization. Contact the Better Business Bureau and research the company on the Internet. Do not fall for the scam of easy money. As previously stated, if the offer is too good to be true, it probably is.