With the current state of the economy, more and more people are losing their homes.  If you are struggling to pay for your home, do not feel alone and know that help is available.  There are a number of resources that can help you deal with your particular situation.

Resources for homeowners who are struggling but have not missed payments:

If you have lost your job and no longer have the same income level as you used to then you might qualify for a Home Affordable Modification under President Obama’s “Making Home Affordable” plan.   You can also qualify for this plan if you have an interest rate that has increased dramatically.  Finding out if you are eligible is easy.   Here are a few tips for getting started:

1. You will want to know the gross monthly income of anyone that is on the home loan.
2. You will also need to know what your total monthly payment is for your home.  This includes the principal, interest, property taxes, home insurance, and homeowner’s dues.
3. Once you have the above information, go to the Home Affordable Modification start page.  Here you can fill out a questionnaire to find out if you are eligible for the program.
4. If you find out that you are eligible, then you will need to contact your lender and ask to be considered for the Home Affordable Modification.  Your lender will advise you of the process.

The “Making Home Affordable” plan can also help people to refinance under the Home Affordable Refinancing plan. This plan is helping families to take advantage of today’s low interest rates.  If you have not been able to refinance due to a lowered value of your home or decreased income, you may qualify.  ONLY loans that are held by Freddie Mac or Fannie Mae qualify for this refinancing plan.

1. First you will want to find out if Fannie Mae or Freddie Mac guarantees your loan.  To find out if your loan is held by Fannie Mae, visit their website at www.fanniemae.com/loanlookup or call 1-800-7FANNIE.   To find out if your loan is held by Freddie Mac, visit their website at www.freddiemac.com/mymortgage or call 1-800-FREDDIE.
2. You will also want to know the amount you owe on your home and the current value of your home.
3. Once you have the above information, go to the Home Affordable Refinance page.  Answer the questionnaire to see if you qualify.
4. If you find out that you might qualify, then you will need to speak with your lender about the Home Affordable Refinance application process.  They will help you get started.

These are only a few of the resources available to struggling families.  For more information about how the U.S. Department of Housing and Urban Development (HUD) can assist you, visit their Avoiding Foreclosure web page.    HUD also provides people with foreclosure avoidance counseling that is often free of charge.  Visit their site to find help in your state.  If you find that this information is helpful, leave a post!  Also, let me know what else you want to know about foreclosures!  Make sure to check back later for future blog articles on foreclosure.