When your application is received and your eligibility is confirmed, the NC Housing Finance Agency may place a temporary stay-of-foreclosure for up to 120 days so that the company that owns your mortgage cannot foreclose on your home or take other legal action while your Mortgage Payment Program loan application is under review. If you qualify for the loan, the NC Housing Finance Agency will make your mortgage payment directly to your loan provider or bank. At the end of the assistance period, you will resume making your mortgage payment.
It literally takes a few minutes to pull your credit report and order your credit score. But surprisingly, some future home buyers never review their scores and credit history before submitting a home loan application, assuming that their scores are high enough to qualify. And many never consider the possibility of identity theft. However, a low credit score and credit fraud can stop a mortgage application dead in its tracks.
Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
There are several steps that homeowners can take on their own to deal with a delinquent mortgage payment or an impending foreclosure. People do not always need to rely on the government, solutions offered by their lender or a housing counselor. There are things you can do own your own. However, please always keep in mind that mortgage counselors can often help you, and they offer free or no cost mortgage advice.
While some agencies limit their counseling services to homeowners with FHA mortgages, many others offer free help to any homeowner who is having trouble making mortgage payments. Call the local office of the U.S. Department of Housing and Urban Development or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency nearby. Or consider contacting the Homeownership Preservation Foundation (HPF); 888-995-HOPE. HPF is a nonprofit organization that partners with mortgage companies, local governments, and other organizations to help consumers get loan modifications and prevent foreclosures.
The Salvation Army provides financial assistance to help with basic needs. If funding permits, the charity offers a rent and mortgage assistance program. To qualify for mortgage assistance, a foreclosure notice from the mortgage company is required. Applicants are screened to determine eligibility. You must have an income sufficient to resume making the payments. Prepare to provide proof of all bills, such as credit cards and utilities. If approved, a check for the month's mortgage is mailed directly to the lender.
In addition to what is mentioned above, the Home Affordable Modification Program has also been enhanced and a new version was created by the federal government. Improvements to it will allow a larger number of homeowners the ability to apply for assistance, including principal reductions or loan modifications that will have an even lower interest rate.
The annual percentage rate (APR) includes fees and points to arrive at an effective annual rate. Because different lenders charge different fees and structure loans differently, the APR is the best way to compare what each lender is offering. For example, Lender A may offer you an astounding 2.0 percent interest rate that sounds far better than Lender B’s 3.5 percent. But Lender A is including points and exorbitant fees. So the APR, or what you’ll really be paying could be higher for Lender A even though the interest rate is lower. APR helps you compare apples to apples.
Don't forget miscellaneous expenses. Be sure to budget for moving expenses and additional maintenance costs. Newer homes tend to need less maintenance than older ones, but all homes require upkeep. If you're considering a condo or a home with a homeowners association (HOA), remember to include HOA dues in your budget. Keep in mind that you should have an emergency fund on hand to prepare for any unexpected changes in your income (like reduction in your wages) or unexpected expenses (like medical bills).
Regions Bank has helped thousands of homeowners avoid foreclosure through a program called the Customer Assistance Program. This can provide a number of solutions to qualified applicants. Sign up for forbearance, repayment plans, and home loan modifications are all offered. There are several Regions Bank foreclosure assistance programs for struggling low income customers.
Looking back at the flood of foreclosures since the housing crash, it’s clear that many borrowers didn't fully understand the terms of the mortgages they signed. According to one study, 35 percent of ARM borrowers did not know if there was a cap on how much their interest rate could rise [source: Pence]. This is why it’s essential to understand the terms of your mortgage, particularly the pitfalls of “nontraditional” loans.
Depending on your financial position, there are many different types of mortgage assistance program available to you. There are two classes of program: government-sponsored and lender-sponsored. Government-sponsored home mortgage assistance tends to be broader in scope and easier to acquire, but less tailored to your individual needs. Remember that the point of government assistance is to free up cash for you to spend elsewhere. Lender-sponsored assistance, meanwhile, is designed to float you through rough patches so you can eventually pay them back. These loans, grants, modifications and agreements are tailored to make sure that the lending company doesn't lose money on you.
Forbearance: Your mortgage payments are reduced or suspended for a period you and your servicer agree to. At the end of that time, you resume making your regular payments as well as a lump sum payment or additional partial payments for a number of months to bring the loan current. Forbearance may be an option if your income is reduced temporarily (for example, you are on disability leave from a job, and you expect to go back to your full time position shortly). Forbearance isn’t going to help you if you’re in a home you can’t afford.
Mortgage Loan Directory and Information, LLC or Mortgageloan.com does not offer loans or mortgages. Mortgageloan.com is not a lender or a mortgage broker. Mortgageloan.com is a website that provides information about mortgages and loans and does not offer loans or mortgages directly or indirectly through representatives or agents. We do not engage in direct marketing by phone or email towards consumers. Contact our support if you are suspicious of any fraudulent activities or if you have any questions. Mortgageloan.com is a news and information service providing editorial content and directory information in the field of mortgages and loans. Mortgageloan.com is not responsible for the accuracy of information or responsible for the accuracy of the rates, APR or loan information posted by brokers, lenders or advertisers.
Hybrid Adjustable Rate Mortgages (ARMs): Mortgages that have fixed payments for a few years, and then turn into adjustable loans. Some are called 2/28 or 3/27 hybrid ARMs: the first number refers to the years the loan has a fixed rate and the second number refers to the years the loan has an adjustable rate. Others are 5/1 or 3/1 hybrid ARMs: the first number refers to the years the loan has a fixed rate, and the second number refers to how often the rate changes. In a 3/1 hybrid ARM, for example, the interest rate is fixed for three years, then adjusts every year thereafter.
Many mortgage programs will require a 620 or higher credit score in order to qualify for a loan. Although, FHA loans are available to people with credit scores as low as 580. However, just because you have a 580 credit score doesn’t mean you will automatically qualify. Lenders look at a lot more than just your credit score. You should have a relatively clean credit history over the past 12 months, with no late payments or collections.
Foreclosure mediation programs have been created by cities, counties, and state governments. A number of local court systems have also created mediation programs that will ensure lenders, banks and homeowners meet with an attorney or professional mediator to explore all solutions to a foreclosure. Learn more on foreclosure mediation programs and whether your state or local government offers one.