In recent years, many people who have been buying homes for sale in Queens, NY are now finding themselves in pre-foreclosure on their mortgage.
Talk To Your Mortgage Holder
As soon as you realize that you may have difficulty with your mortgage payments, you should contact your lender. Most lenders have programs in place that can keep your home out of foreclosure. Some of these programs include:
• Payment Forbearance. Many foreclosures could be prevented by using a forbearance. This type of program allows you to delay your payments, or pay interest-only payments for a few months until your financial standings have recovered. This comes in handy for someone that may be out of work for a few months because of an injury and will soon return to work.
• Loan Modification. A loan modification can help you in many ways. Lenders that offer modifications often lower the monthly payments by extending the length of the loan, reduce interest rates, or bring the loan current by adding the missed payments to the end of the term.
Lenders may also have other programs in place that are specific to their company. The Loss Mitigation department is who will handle modifying any terms of your mortgage.
There are also two federal programs in place that may be able to help you prevent having your home foreclosed. These programs are:
Home Affordable Modification Program (HAMP). HAMP works with specific lenders throughout the country to try to prevent foreclosure. You must qualify for this program by having a loan through a specific lender and by meeting financial hardship guidelines. The HAMP program can modify the terms of your loan by reducing interest rates, extending loan terms, and in some cases, readjusting the balance of your loan.
Hoe Affordable Refinance Program (HARP). HARP is designed to help people who are current on their mortgages but are anticipating a struggle to make payments, or with anyone that has a loan that is held by Freddie Mac or Fannie Mae. HARP allows the homeowners to refinance their homes to a low interest rate conventional loan that is more affordable.
Taking advantage of these programs will help you save your home and avoid foreclosure.