Are you finding yourself stretched thin at the end of the month? Well, you are not alone. Millions of U.S. homeowners are having a tough time making ends meet. As always in some cases this is due to sudden unexpected illness or an unexpected job layoff, but there are some more factors causing higher credit delinquencies than ever.
Hard Times Can Hit Unexpectedly, What Can Be Done About Them?
If you are just finding yourself in an ackward and unfamiliar credit problem because up until now you have maintained great credit you can take a little pressure off yourself as you are not alone in this situation. And, having a problem does not mean that youare a terrible person, or a irresponsible person. It could just mean that you made a mistake and now you are working your way out of it.
Solutions For Helping With Your Mortgage Credit Problems
- Discuss your situation with a credit or finance counselor
- Talk with a reputable lender about refinancing from your ARM into a fixed interest loan. Though payments may run higher, they will continue at that rate and not fluctuate with increasing interest rates.
- If facing foreclosure, free assistance is available by consulting with a housing counselor supported by HUD who provides the service to help homeowners avoid foreclosure (see HUD.gov).
- Another solution would be to consider selling your house, pay off mortgage and use remaining equity funds to buy a smaller, more affordable place to live.
- You could be eligible for an insured FHA (Federal Housing Authority) loan. FHA Approved Lenders follow strict loan guidelines which are designed to prevent foreclosures and assist homeowners in getting them into the right loans and through tough times so they don't lose their homes. The FHA can also help homeowners to refinance from an ARM increasing payment they can't afford. This program is known as the FHA Secure Loan Program which was signed into existence by President Bush in 2007.
- A final choice would be to consider bankruptcy, but you'd need to talk with a bankruptcy lawyer as to advisability in saving your home through this legal procedure. You will also need to check into the pre bankruptcy education requirements.
Beware Of Scam Artists
Homeowners facing possible foreclosure need to beware of con artists who are waiting to take advantage of those struggling financially. There are three types of "helpers" or "rescuers". One version charges exorbitant fees to make phone calls or handle paperwork which the homeowner could do. Throughtout the process, desperate but hopeful homeowners are given false hope which causes delay and sucks up critical time where seeking actual effective help could have made a difference. In the end of this type of scam the home owner is left with no time to do anything about losing their home and they have lost money too.
In another scheme, homeowners are encouraged to sign over their title, having been deceived in believing they could remain as a renter and buy back the house at a later time. However, this results in the homeowner's inability to repurchase the house and he ends up with an eviction notice and loses most or all of his equity.
The third swindle is when the homeowner is talked into signing papers to bring their mortgage current, but unknowingly has signed over the deed to their house and unaware they've been scammed until notified of eviction.
Ways To Protect Yourself Against Unscrupulous Companies
If already in foreclosure, ignore all offers to help, whether contacts from people or advertisements. Avoid signing documents concerning your house or adding a co-owner to your deed without getting competent advice from an attorney, counseling service or someone you trust. Study and be certain you understand everything you are asked to sign. Have all promises in writing and get signed copies and fill in all blanks in the paperwork.
When applying for a loan, check with your state dept of housing or licensing to make certain your lender agent is licensed or registered and authorized to sell mortgages in your state. It is wise to remember that whenever you have any doubts about anything, it is better to walk away and not to follow through. For anyone wanting to do business with you, they should be able to answer your questions until you are satisfied.
There is help available if you know or suspect you are a victim of fraud. In your phone book under government listings, you can find phone numbers to call for state attorney general, state office of banking, county office of consumer affairs. Report to the Federal Trade Commission at 1-877-FTC-HELP or FTC.gov.
One last suggestion is to have a lawyer check your loan paperwork to see if any state or federal laws would allow you to be released from your loan.
See these articles for more information about types of foreclosure scams: How To Spot A Foreclosure Rescue Scam, The Tactics of a Foreclosure Rescue Scam Artist, and Foreclosure Rescue Scams - What Are The Warning Signs?
If you want more information on this topic please ask EdGAR.
