Federal Government Foreclosure Plan - Explained

In essence the plan is to help struggling homeowners in the event that they risk loosing their home due to not being able to meet their monthly loan repayments. It is a safety net that helps individuals with low income  save against being kicked out of their homes should they be unable to service their mortgages.

Many current home owners especially those who currently have a bad credit rating and are paying higher than average contributions every month are increasingly defaulting on their loans and having their homes repossessed. The federal plan is expected to help this situation by offering prevention and protection where necessary. An important aspect of this plan is also to increase its level of accessibility so that those who are at risk know their real options and can seek help in time before their home is taken away from them.

There are 3 primary mortgage relief packages that are opened to qualified distressed homeowners which include options like refinancing an existing loan with the Federal Housing Administration (FHA) loan, 5 years freeze on current interest rates or even a 1-2 year aid program to help finance the monthly contributions.

Who developed the Federal Government Foreclosure Assistance Programs?

It is a set of programs set out to help home owners with loan issues. The program, specifically, the Federal Housing Administration Secure Program (FHA-Secure) was first developed in 2007 by George W. Bush under the administration of the Department of Housing and Urban Development (HUD).

What is The Federal Housing Administration Secure Program?

Specifically it is a refinancing option for home owners who are in very poor financial shape and probably have a bad credit rating. With the FHA-Secure program, a refinancing mortgage is almost guaranteed regardless of your financial state. Its main purpose is to help home owners with adjustable rate mortgages who experienced increases in their monthly repayments and were struggling to keep up.

Where do I get The FHA-Secure?

Most large banks and mortgage companies would have loan programs that incorporates the features of a FHA-Secure refinancing program. Each lender would package the refinancing slightly differently however the basis of it remains. Our recommendation would be to call us or your lender to set-up a meeting with a FHA specialist who can help you through the application process.

Please note that the Federal Government has many other foreclosure prevention, loan modification and even loan assistance programs that many don't know about. We recommend that customers have a look at The Department of Housing and Urban Development website for further details. 

These programs are targeted at low to medium income families in particular but those who think they might have problems with their loans are encouraged to call 1-888-995-HOPE for help and counseling before their problem get too far out of control. The main problem that this initiative has is lack of marketing and information distribution. If you know someone who is in trouble, please let them know that they don't have to lose their home, they can apply for help.federa