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Debt Relief – Insolvency – Bankruptcy Information » Foreclosure Help » Can anyone tell me where to find out exactly how the stimulus plan is suppose to help a foreclosure homeowner.?

Can anyone tell me where to find out exactly how the stimulus plan is suppose to help a foreclosure homeowner.?

I need to know exactly what the plan is called to help homeowner that are in foreclosure with a sale date allready set.

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2 Responses to "Can anyone tell me where to find out exactly how the stimulus plan is suppose to help a foreclosure homeowner.?"

  1. acermill says:
    There is no such plan. If you’re THAT close to foreclosure, it’s pretty much a foregone conclusion that you will lose the property. Apparently, you did not make your mortgage payments as agreed. The stimulus is not designed to help those who did not pay, to the point of foreclosure.
  2. Becky says:
    You can go to http://www.hud.gov to read the stimulous plan and how it works. It is for people who have homes backed by investor groups Freddie Mac or Fannie Mae. It is designed to help people in bad loans or who are just starting to fall passed due.

    If you have a Fannie or Freddie backed loan you should call yor loan servicer, the Loss Mitigation Department, and start the process or attempting to pre-qualify for a workout.

    Even if you do not have a Fannie or Freddie backed loan you should still call your servicer to see if you can pre-qualify for some kind of workout. To figure out if if they’re going to work with you the first thing would be to sit down with your paystubs and any other ‘guaranteed’ income that you have coming in. Then take all your bills on debt that is reporting to the credit agencies as well as basic monthly expenses such as food, gas, utilites, insurances, etc. If you subtract your monthly debt from your income and are either breaking even or have a small surplus there is a good chance you can get on some kind of a workout to save the home. You’ll also want to have a ‘contribution’ to be able to put toward your delinquency (at least 1 payment or up to 35% of the debt owed) that can be given to the bank if you do get a workout (usually has to be sent back with the new agreement).

    If you don’t have a Fannie or Freddie backed loan, or if you have a deficit of income – you have a few choices. Either adjust your expenses so that you’re breaking even, call your servicer at that point and try for the workout. You can always put the property on the market and try to sell it with the end result being a full payoff to the bank, or a possible short sale. If you have it listed for 3 or more months without an offer you could then request to do a Deed In Lieu (i.e. give the house back to the bank). Your last option (the one that the banks are trying to avoid by giving you alternate options) is to let the foreclosure happen and start fresh. The FC code would be on your credit for 7 to 10 years – however we’re in a recession so there will be some forgiveness when attempting to get credit in the future. FHA will assist you to get a new home in 2 years after a foreclosure if you keep your credit perfect with the exception for the foreclosure. If you get rid of the home through whatever means necessary, in the not to distant future you could qualify for a home with a better interest rate that is actually priced correctly and you could potentially get a better bang for your buck. Sometimes a fresh start is just what we need. Foreclosure is a bitter pill to swallow, but when it’s done there is a lot of learned lessons and you get to start over.

    Good Luck

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